Question : HANDLOOM SECTOR UNDER FBT

(a) whether any representation for exemption of traditional handloom sector from the purview of Fringe Benefit Tax (FBT) is received by the Ministry of Finance;

(b) if so, the details thereof and action taken thereon;

(c) whether the matter is taken up/being taken up with the Ministry of Textiles;

(d) if so, the details thereof and achievements made therefrom;

(e) whether any study on this issue has been conducted at the instance of the Ministry of Finance; and

(f) if so, the details thereof and the findings thereof?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a) & (b): Yes Sir. We have received a Pre-budget Memorandum from The Tamil Nadu Handloom Industry and Trade Association seeking abolition of the Fringe Benefit Tax. The memorandums and representations received from various sectors will be examined during the budgetary exercise and the Government’s response will be reflected in the Finance Bill, 2006.

(c) & (d): No Sir.

(e) & (f): No Sir.