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Orissa rolls back VAT on textiles
Jul '11
In a move that is expected to pacify the agitating textiles traders in the State, the Orissa Cabinet has decided to rollback the four percent Value Added Tax (VAT) imposed on textiles.

Orissa Garments' Association (OGA) and All Orissa Textile Merchants' Association (AOTMA) were protesting against the State government's move to impose a four percent Value Added Tax (VAT) on textile products which came into effect from May 3, 2011.

These Associations were demanding withdrawal of the VAT on textile items, as it would make the retailers turn to the adjoining States of Andhra Pradesh, Chhattisgarh, Jharkhand, and West Bengal, where VAT is not imposed on textile items.

The States were allowed to levy tax on textiles after passing of the Union Budget 2011-12. Textiles were earlier exempt from VAT, as they were subjected to Additional Duties of Excise (goods of special importance) Act, 1957.

Fibre2fashion News Desk - India

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