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AP textile traders continue to protest VAT
Sep '11
Textile traders in the twin cities of Hyderabad and Secunderabad shut their shops for the second day today to protest against the imposition of Value Added Tax (VAT) by the State government.

Unlike the earlier bandhs in the State, the two-day shutdown by thousands of textile shops this time is being supported by the Opposition parties.

Andhra Pradesh Federation of Textile Associations has been protesting against the levying of 4 percent VAT on textiles, fabrics, garments and curtains since it was imposed in July 2011.

The Federation, representing more than 300 textile associations in the State, also organized a huge public meeting in the City on Wednesday.

The State government had earlier made some relaxations in VAT under pressure from textile and garment traders. It has exempted VAT for traders with a taxable annual turnover below Rs. 500,000.

It has also given VAT exemption on inter-State sales of textiles. In addition, the Department of Commercial Taxes has exempted made-ups, zari and embroidery items, and textiles made by handloom houses.

However, the traders are not satisfied with these exemptions and are demanding complete rollback of VAT.

Fibre2fashion News Desk - India

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