The South India Garment Association (SIGA) has urged the government to continue excise duty exemption on branded garments for the healthy growth of the organised sector.

‘“We have urged the government to continue excise duty exemption on branded garments for healthy growth of the organised sector. If government brings back compulsory excise duty on branded garments, it will have disastrous impact on the industry and will help the grey market,” SIGA  President Kundan Jain said in a statement.

Various schemes, incentives and subsidies given to the garment sector for development may create large scale employment but bringing it under excise duty may downsize the industry creating unemployment. “While we are heading towards GST regime, re- introduction of excise duty on garments may lead to huge confusion and great fall of the garment manufacturing sector,” added Kundan.