Hyderabad, January 24 (INN): Over two lakh textiles traders across the State began their nine-day bandh on Monday demanding lifting of five per cent Value Added Tax on textiles.
The ever-busy markets at Pathergatti, Patel Market, Rikabgunj, Secunderabad and other places in the city wore deserted look on Monday after the traders downed their shutters. The traders also took out rallies and a massive dharna was also staged at the Indira Park demanding that the State Government spare the textile traders from the burden of VAT till the time the General Sales Tax is implemented across the country.
The Andhra Pradesh Federation of Textiles Associations general secretary Soma Dayanand told INN that five per cent VAT was badly hitting the textiles’ business in the State. He said the State Government issued a GO Ms No 932 on July 8, 2011, levying four per cent VAT on textiles and the same was later enhanced to five per cent. He said no other State in the country was collecting VAT on textile. Four states – Odissa, Jharkhand, Rajasthan and Tamilnadu have rolled back the VAT after protests.
Dayanand said that a majority of youth were inclined towards readymade garments which are already attracting VAT. Therefore, levying of VAT on textiles was not required. Textiles trade has a credit period of more than four months. Traders need to pay tax in advance even when there is no actual cash trade. Therefore, nearly two lakh traders are being forced bear the burden of VAT, he said.
The Federation has demanded that the government immediately roll back the VAT as it would directly or indirectly affect nearly 20 lakh families across the State.
The Federation has warned that they would conduct a ‘Chalo Assembly’ rally in February if the State Government do not lift the VAT from textiles. (INN)