NEW DELHI — After a series of somersaults, including an increase in excise duty and changing the way the tax abatement is made, prices on branded garments will come down in India in the fiscal year starting April 1.
Although the excise duty on branded garments has been increased to 12 percent from 10 percent in the new budget presented last week, the duty will be charged on 30 percent of the cost of the products instead of 45 percent, which will bring down final prices.
“As a result, the incidence of duty as a percentage of the retail sale price would come down from 4.5 percent to 3.6 percent,” Pranab Mukherjee, the country’s finance minister, said as he presented the government’s budget for 2012-13 in parliament. Last year, a 10 percent excise duty introduced on branded apparel led to widespread protests from the fashion industry with demands for the government to rescind the tax.
The tax was levied on both imported and Indian branded garments. The government’s decision to change the way the duty is calculated will bring down prices but has frustrated the hopes of various organizations, such as the Associated Chambers of Commerce and Industry, which were hoping the duty on branded garments would be cut to 1 percent.
Meanwhile, service tax has gone up from 10 to 12 percent, increasing the pressure on consumers.
The finance minister said that the economy’s growth rate for the next fiscal year would be about 7.6 percent and could be expected to be 8.4 percent in 2013-14. He observed that India had suffered from rising inflation and the global economic situation to drop to a 6.9 percent growth rate in the current fiscal year, but would be back on track in 2012-13.
Industry analysts feel that this may be overly optimistic, given the rate of inflation as well as the government’s apparent lack of decision making prowess.
Many retailers had been hoping that foreign direct investment in multibrand retail would be sanctioned and announced with this budget. However, this matter remains postponed until there is a greater political consensus.
A room full of toiles at the haute couture atelier in the Dior exhibition at Les Arts Décoratifs, open in Paris since July 5. This is just one of three major exhibitions that have been timed to coincide with the house's 70th anniversary. See the rest of the exhibits, plus read WWD's look into the iconic brand's history. Link in bio. #wwdfashion (📷: @dominiquemaitre)
For spring, Pamplemousse's Danica Zheng presented her signature slip dresses attached to a white T-shirt along with floral windbreakers, off-the-shoulder cotton blouses and more. For more highlights from the New York trade shows, go to WWD.com. #wwdfashion
The Green Carpet Fashion Awards closed out Milan Fashion Week yesterday. The fashion industry flocked to the event, showing its efforts to support and spread the message of sustainability. Supermodel Gisele Bündchen said "if each one of us took at least one step is this direction, there is no saying how much could be done." #wwdeye #wwdfashion #mfw (📷: Lodovico Colli di Felizzano)
Etro’s show, titled “The Tree of Life,” was a celebration of the house’s 50th anniversary. “My father founded the company in 1968, which was the year of counterculture and psychedelia. It’s really a show that celebrates that and the paisley design of India and its origin,” said Veronica Etro. #wwdfashion #mfw #ss18 (📷: @delphineachard)
For @msgm’s spring 2018 show, creative director @massimogiorgetti said “Words, sounds, colors. Synthesis and therapy of a collection,” were the inspirations behind the collection, showing today. Read the rest of Milan spring 2018 inspirations on WWD.com. #mfw #wwdfashion #ss18
For her first solo album in over 10 years, Fergie tapped Carine Roitfeld, Mert and Marcus, Giovanni Bianco and more to create a fashion-focused video approach for the record, Double Dutchess. "Giovanni really helped me get back in touch with my tomboy side, my hardside," said the singer. #wwdeye #wwdfashion ( : @slovekinpics)