For the third day on Monday a large number of cloth shops in the twin cities and other parts of the state remained shut demanding abolition of value added tax (VAT) on textiles.
The Andhra Pradesh Federation of Textile Associations (APFTA), along with 27 Textile Associations of Andhra Pradesh, will conduct a mock funeral procession of Value Added Tax (VAT) from MG Road in Secunderabad to Dharna Chowk at Indira Park at 10.30 am on Tuesday in protest against the state government’s move to bring textiles under the lsit of sensitive commodities and refusal to roll back VAT.
No other state considers textiles as a sensitive commodity, they say.
Addressing a press conference here on Monday, APFTA president Ammanabolu Prakash, along with twin cities VAT coordinator Cheera Satyanarayana, condemned the state government’s decision to bring textiles under sensitive commodities. They said VAT was not being levied on textile products anywhere in the country.
“This would affect nearly one crore people who are dependent on this industry for their livelihood. The textile industry would have to migrate to other states,” they warned.
Prakash said that if textiles came in the list of sensitive commodities, then the dealer or trader must have a Way Bill while purchasing the material in other states.
“Way Bill is given to a person, dealer or trader who has TIN. When a trader has TIN, he has to automatically pay VAT. This policy does not exist anywhere else in the country,” the APFTA president explained and demanded a uniform VAT policy across the country.
Satyanarayana said that the state government should understand the problems being faced by the textile industry which was contributing to the development of the state by generating huge revenues and providing employment.