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Andhra Pradesh textile traders to observe strike on Jan 24
Jan '13
To protest the levy of value-added tax (VAT) on textiles, members of the Andhra Pradesh Federation of Textile Associations would observe a strike on January 24, 2013, Federation President Ammanabolu Prakash said.
Addressing media, Mr. Prakash said textile traders in the state are not denying VAT payment, but are seeking of the state government to keep it at one percent in abeyance, until the Central Government ensures countrywide imposition of goods and services tax (GST) or VAT.
In the interest of traders, states like Orissa, Rajasthan, Tamil Nadu and Jharkhand have withdrawn VAT on textiles levied earlier, Mr. Prakash said. 
He said the pattern of VAT calculation was knotty and small traders in the state were under confusion because according to the ordinance issued by the state government, VAT is applicable at fixed one percent on textiles, but traders have to pay it at three percent as it is actually levied at production, wholesaler and retailer levels before it finally reaches the consumer.
He added that the federation members have resolved to decline tax payment even at one percent, till the Centre uniformly levies the tax throughout the nation, Mr. Prakash said. 
The state textile industry would probably incur a loss of Rs. 100-150 million due to the one-day strike, he said.

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