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Rajasthan Govt imposes huge VAT hike on RMGs
Mar '10
As a mode of demonstrating their protest against a ten percent hike in the VAT on branded readymade items, manufacturers and dealers of readymade garments staged a symbolic one day strike.

As the VAT rates were hiked from four to 14 percent , the strike was called by the Rajasthan Readymade Clothes Manufacturers and Dealers Association, which maintained that the strike was absolute and successful.

Ravindra Sethi, President of the Association, remarked that imposition of such additional tax on the Rajasthan's garment traders would render them non-competitive in inter-state trade and markets outside Rajasthan, as except for Rajasthan in all the states across the country uniform VAT of four percent on clothes is applicable which is inclusive of MRP.

According to him, the hike will not only impact big-brand manufacturers, but also the small readymade manufacturers who hold registered trademarks will be affected. He stated that, quite possibly the government meant to tax the moneyed section of the society, who spent on those branded clothes, but the current hike, without any discrimination will be affecting even the poor class, as those big multinational brands have specifically not been distinguished from the local brands.

The Association maintained that owners of shop from big cities of Rajasthan participated in the strike. The shop owners in their corresponding collectorates, organized a march and also staged dharna's. Also a memorandum was handed over to the Chief Minister.

Fibre2fashion News Desk - India

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