AEPC Seeks Tax Relief & Incentives to Combat US Tariff Shocks

The Apparel Exporters Promotion Council (AEPC) has urged for fiscal incentives, tax cuts, and increased interest subsidies to offset US tariff impacts. Key proposals include reintroducing a reduced corporate tax rate, expanding interest relief, and establishing a Green Transformation Fund to support eco-friendly manufacturing.

In anticipation of the forthcoming Budget, the Apparel Exporters Promotion Council (AEPC) has called for significant fiscal incentives to counteract the recent US tariff shocks affecting the industry. Key requests include the introduction of scrips and an increase in the interest subsidy rate on loans.

The AEPC, led by Chairman A Sakthivel, outlines pre-budget recommendations such as the reintroduction of a 15 percent concessional corporate tax rate for new manufacturing units, lowering GST on textile machinery, and implementing a technology upgradation scheme for micro businesses.

High tariffs imposed by the US have heavily impacted Indian exports. To maintain market competitiveness, AEPC is advocating for various support measures, including a Green Transformation Fund for sustainable manufacturing and accelerated depreciation to enhance liquidity and modernize capabilities.

(With inputs from agencies.)