Members of the Textiles Merchants Welfare Association, Vijayawada on Saturday appealed to the government to cancel one per cent Value Added Tax (VAT) on textiles and textile goods.

Several political parties from the Opposition have shown their solidarity with the demand of the cloth merchants by visiting the agitation venue on Sunday at Vastralatha in Vijayawada.

“One per cent tax would become a heavy burden on the textile business units and businessmen.

Considering lack of awareness about the tax returning process among the small and medium businessmen, the decision should be withdrawn,” demanded Textiles Merchants Welfare Association, Vijayawada president P. Bheema Rao.  

He added that “the government has imposed additional one per cent VAT on textiles at a times when we were expecting cancellation of Value Added Tax on textiles and textile goods.”

Urging the government to take urgent steps to rescue merchants by lifting up tax impositions, the Textiles Merchants Welfare Association, Vijayawada, vice- president B. Krishna Kishore said that textiles should be exempted from the sensitive commodities list under the Sensitive Commodities Act.

He warned that the Congress government would lose support if it failed to act on the issue.

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