Home / Knowledge / News / Textiles / SISPA asks Tamil Nadu CM to reduce VAT on cotton
SISPA asks Tamil Nadu CM to reduce VAT on cotton
08
Jun '15
The South India Spinners Association (SISPA) has asked Tamil Nadu Chief Minister J Jayalalithaa to reduce VAT on cotton, cotton yarn and man-made yarn to two per cent from the present five per cent, according to media reports.

Tamil Nadu’s share in the country’s total spinning capacity is around 55 per cent, but the state has deficient cotton production. SISPA president C Varatharajan said, "Since cotton production in the state is not sufficient to meet the needs of mills here, they have to source it from other states.

"Considering that the logistics cost was an added one and was increasing gradually over the years due to fuel price and various other factors, their production cost was on the higher side, making them less competitive compared to the peers in other states."

Sale of cotton yarn in Tamil Nadu attracts five per cent sales tax, whereas it is only two per cent for yarn from neighbouring states.

This difference also increases the cost of finished goods within Tamil Nadu and on inter-state sales, making them expensive as compared to the price of yarns from other states, Varatharajan claimed.

SISPA therefore wants VAT to be reduced to two per cent on cotton, cotton yarn, blended and synthetic yarns to safeguard the spinning industry in the state and save the livelihood of lakhs of workers in textile industry, he said.

Varatharajan also asked for abolishing the one per cent market cess levied on cotton waste. (SH)

Fibre2fashion News Desk – India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search