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The textile industry hails the decision of Textile Ministry to eliminate 0.5 percent textile committee tax, which has been sustaining since 1963. The tax was collected to fund actions such as compulsory pre-shipment quality check.

South India Mills Association (SIMA) Chairman, Vijay Venkataswamy informed that the Ministry of Textiles had been trying to revoke the tax for many years. The tax collected was used to put in the Consolidated Fund of India and very little part of it was repaid to the committee for its expenses.

The elimination of the tax is the part of the Textile Ministry¡¯s plan of becoming self-sustaining and encouraging the industry growth.

The industry has urged the ministry to set textiles free from the purview of the Essential Commodities Act since there is no lack of cotton now. Under the Essential Commodities Act, cotton spinning mills are compelled to pack 40 percent of their output in the hank form under the hank yarn obligation.