The Indian government on Thursday decided to exempt all textiles and textiles machinery manufactured in the country from a long-standing cess.

Conceding the long pending demand of the textile sector, the Union Cabinet approved the exemption of all textiles and textiles machinery manufactured in India from Committee Cess under section 5E of the Textile Committee Act, 1965.

This exemption will rationalize the tax and cess burden on the textile sector in the changed scenario of global competitiveness and thus improve competitiveness of Indian textile sector in global markets, a government spokesperson said.