Lift VAT imposed on textiles industry: Naidu

Telugu Desam Party president N Chandrababu Naidu on Wednesday appealed to the State Government to lift four percent value added tax imposed on textile traders.

Addressing a programme organized at Exhibition Grounds by the Andhra Pradesh Federation of Textile Association, Naidu said that the imposition of four percent VAT on weavers and textiles traders would cause immense financial hardship for the business communities. Stating that no other State in the country has imposed VAT on clothes, he said the state government was trying to extort nearly Rs 1500 crore from the traders.

Though the Centre lifted excise duty on weavers, Naidu alleged the state government continuing it in blatant violation of rules and regulations. He said that lakhs of people were employed directly and indirectly by the textiles industry and their future would be in doldrums if the new tax is not waived. He advised the government to increase taxes on mining and belt shops.

Communist Party of India state secretary K Narayana warned the government of serious consequences if it fails to lift the VAT on traders. He said that the CPI would organize half-naked procession across the state.

Communist party (Marxist) state secretary B V Raghavulu expressed serious concern over the imposition of tax on textiles, the primary need of all people. He asked the Chief Minister to explain to people of state what necessitated him to impose tax on textiles. He said the people of state would revolt against the government move if it did not lift the VAT immediately.

The textile traders are observing two day bandh across the State protesting against the imposition of VAT. The traders are also planning to sit in for relay hunger strikes on Thursday apart from holding statewide protests.