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Updated: January 27, 2012 17:31 IST

AP CM turns down demand for abolition of VAT on textiles

PTI
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A protest rally by BJP to demand dropping of VAT on Textiles in Hyderabad on Friday. Photo: Mohammed Yousuf.
The Hindu A protest rally by BJP to demand dropping of VAT on Textiles in Hyderabad on Friday. Photo: Mohammed Yousuf.

Andhra Pradesh Chief Minister N Kiran Kumar Reddy today snubbed the textile traders when they met him with a request to abolish value-added tax (VAT) on textiles in the State.

The textile traders across AP have been observing a ‘cloth trade’ bandh for the past five days demanding abolition of VAT.

A delegation of textile traders’ association met the Chief Minister here this morning to put forth their demand.

Mr. Kiran curtly told them that there was no question of conceding their demand.

“We are implementing a policy (on VAT) that is in force in all other States. We are collecting VAT only if the turnover is above Rs 40 lakh. It is not proper for traders who do a business of over Rs 10 crore to oppose VAT,” a release from the Chief Minister’s Office said, quoting Mr. Kiran.

He told the traders his Government was implementing a slew of welfare programmes for which huge funds were required.

The CM, however, assured them they would not be subjected to any kind of harassment in the collection of tax.

Meanwhile, Leader of Opposition N Chandrababu Naidu demanded that Government abolish VAT on textiles forthwith.

“Levy of 5 per cent VAT on textiles is totally unjustified. No state in the country is collecting VAT (on textiles) except AP,” he said in a letter to the Chief Minister.

Even the four States that previously imposed VAT on textiles withdrew it on the request of traders, the TDP President pointed out.

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