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Gujarat garment makers threaten hunger strike
Mar '11
The Gujarat Garment Manufacturers' Association's (GGMA) President, Vijay Purohit, has warned that if the Centre fails to withdraw the proposed 10 percent levy of excise duty on branded apparels by March 30, they would resort to an indefinite hunger strike March 31 onwards.

He said that, they are firm on their plans and are not ready to bargain unless in the event if the authorities change their mind and show willingness to withdraw the levy. He further revealed that, members of around 150 associations would join them in the hunger strike.

Purohit stated that, to push for their demands, the garment traders in the state would cease operations for a week from March 28.

The strike is likely to cause the state government to suffer sizeable loss in collection of value-added tax (VAT), he said. No transactions have taken place since February 28 onwards, which has had an adverse impact on VAT collections, he added.

He even stated that, the recent relief granted in the levy, whereby it has been decided to levy the duty on 55 percent of the MRP, instead of 40 percent, was only eyewash to dupe the garment makers.

In Ahmedabad alone, there are around eight thousand units which employ about 200,000 workers, who mainly come from the lower-middle class, Purohit added.

Fibre2fashion News Desk - India

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