Pest Analysis of Retail Apprel Industry

The new Textile Policy of 2000 set the ball rolling for policy reforms in the textile sector, dealing with removal of raw material price distortions, cluster approach for powerlooms, pragmatic exit of idle mills, modernisation of outdated technology etc. The year 2000 was also marked by initiatives of setting up apparel parks; 2002 and 2003 saw a gradual reduction in excise duties for most types of fabrics while 2004 offered the CENVAT system on an optional basis. The Union Budget of 2005-2006 announced competitive progressive policies, whose salient features

Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands’ End, in addition to private companies (Plunkett Research, Ltd.). However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. China’s competition is huge, with Vietnam, the Philippines, Malaysia and Sri Lanka also producing material at cheap prices (Plunkett Research, Ltd.). The US apparel stores can instead purchase from these other Asian countries. It is hard to determine the exact number of suppliers in this industry; but, in general, majority of them are in Asian countries that can provide low-cost raw materials to US-based apparel stores. Therefore, the US apparel stores may acquire higher net profi

Many services offered to the public are funded by theses taxes, which could not be administered successfully under some other arrangement. Taxes are defined as an obligatory subsidy to state income. These subsidies are imposed by the local, state, and federal governments on workers wages and business’s financial gains or added to the cost of some

Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility

First, CEPA exempted the tariffs of Hong Kong origin goods when they importing to the mainland. “Hong Kong origin goods” is having three explanations, the goods that in line with any one of these

product, the effect is, like a tariff, to raise the price of the import and make

Taxation is by which governments finance their expenditure by requiring costs on corporate entities and citizens. The government uses tax to discourage or encourage certain economic choices. Example, reduce in taxable personal or household rent by the amount paid as interest on home contract loans results in greater construction activity and generates more jobs. An essential function of taxation is to support government expenditures. Different justifications and explanations for taxes have offered throughout history. New taxes were used to support ruling classes, raise armies and build defenses. Often, the authority to tax stemmed from a divine or supranational right. Taxes are significant source of revenue, and its collection is one of the most important functions performed by the state

Taxes - compulsory, unrequited payments to general government. Collected for the provision of social & merit goods.

All over the world, governments undertake huge public expenditure on behalf of their citizens for the provision of basic amenities and other social services. To meet up with these responsibilities, governments thus require substantial amount of funds. Among the various sources from which can generate income, taxes are the most important and most reliable; contributing much more than any other source. A tax therefore, is a compulsory levy imposed by the government on the income, profit or wealth of an individual, family, community, Taxation is the inherent power of the state, exercised through the legislature, to impose financial burdens upon subject within its jurisdiction for the purpose of raising revenues to carry out the legitimate duties of government (Kenned & John, 2014)

The textile industry has undergone enormous change in the past ten years. Global trade in textiles was once regulated by high tariffs and a complex system of import quotes. Not anymore. Textiles used to be produced predominantly in the U.S., Europe and Japan. Not anymore. Textile mills used to dictate fashion, everything from fabric construction to fiber content. Not anymore.

Apparel industry in Sri Lanka has become one of the most important contributors to Sri Lanka’s GDP. In fact, the industry has grown enormously well during the past 3 decades bring opportunities for locals, internationals, and organizations. Moreover, Sri Lanka apparel industry has definitely helped the country’s development in numerous ways.

Exporters of such products shall be entitled for duty credit scrip equivalent to 5% of the FOB value of exports for each licencing year commencing from 1st April, 2004 . The scrip and the items imported against it would be freely transferable.

GST is a simplified tax structure applied on both goods and services. It is value-added tax levied at all points in the supply chain with credit allowed for any tax paid on input acquired for use in making the supply. It would be applicable on supply of goods or services as against the prevailing system of tax on the manufacture of goods or on sale of goods or on provision of services. It would be a destination based tax as against the existing system of origin based tax. In order to maintain the federal structure, the nation is going to have dual GST, central GST (CGST) and the state GST (SGST). This means that there will be common tax base for both the centre and the states. There will also be integrated GST (IGST). It would be levied on inter-state supply of goods and services. This would be collected by the centre so that the credit chain is not disrupted. Import of goods and services would be treated as inter-state supplies and would be subject to IGST in addition to the applicable custom duties. Rates for all the three would be decided by the GST council.

India is maximizing and strengthening its manufacturing base. Over the years the country has witnessed good amount of development of some regions as specialized in niche products, making it easier and feasible for international players to source and work in India. Few hubs of such garment industry are Bangalore, Ludhiana, Delhi and Jaipur.

GST is a comprehensive tax which will be levied on both goods and services. It is a value added tax where tax is imposed only on the value added at each stage in the supply chain. Presently the Indian tax structure is very complex. There are a large number of taxes on goods imposed by the central and the state government. There are central taxes like central excise duty, additional excise duty, additional custom duty, central sales tax, central surcharges and cesses. Then there are state taxes like VAT/sales tax, purchases tax, luxury tax, tax on lottery, betting and gambling, state cesses surcharges and entertainment tax. Apart from these taxes on goods, there is the central tax on services.