Andhra Pradesh government has raised the primary Value Added Tax (VAT) on textiles, garments and all industrial products to 5 percent from the present slab of 4 percent.
Even as the textile traders in the State continue to protest the imposition of four percent VAT, the government has gone ahead with issuing an Order to the effect on Tuesday.
The new Government Order is in preparation of the ground for the Goods and Service Tax (GST) that is to become applicable from April 2012.
As a result, the textile and garment entrepreneurs in the State, who have only recently been brought under the VAT regulation, would end up paying one percent additional tax.