Sisspa wants removal of cess on waste cotton

Coimbatore: South India Small Spinners Association (Sisspa) has asked the Tamil Nadu Government to do away with the cess on waste cotton levied by the agricultural market committee.

The association said that spinning units using cotton as raw material for producing yarn obtain the wastes as by-product after the spinning process and these wastes cannot be treated as agriculture produce. Thewaste cotton is being subjected to market committee cess for which there is no justification, the association said.

Call for VAT regime


The association, at its 14th annual general meeting held last week, also urged the state government to implement the value-added tax regime which will enhance the trade's progression and create level-playing field for industry and businesses of the State with the rest of the country.

As for the on-going technology upgradation fund scheme (TUFS), the association felt that the minimum spindle norm for the spinning industry to avail themselves of funds for modernisation of plant and machinery under the TUFS route should be withdrawn to expedite the modernisation of small-scale spinning mills and the Centre simultaneously should extend the TUFS' tenure till 2010 to sustain the textile industry modernisation drive.