Home / Knowledge / News / Textiles / Orissa traders protest VAT on textiles
Orissa traders protest VAT on textiles
08
Jun '11
Demanding an immediate rollback of Value Added Tax (VAT) on textiles, textile traders all across Orissa observed a bandh on June 7.

The traders claimed that Orissa is the first State which has subjected textile fabrics to a levy of four percent VAT from May 3, 2011. Earlier, Jharkhand and Rajasthan had levied VAT on textile items, but roll-backed the same following protests by traders.

After the introduction of VAT, the prices of Orissa textiles have gone up in comparison to its adjoining States of Jharkhand, Andhra Pradesh, Chhattisgarh and West Bengal. This would prove detrimental for the wholesale traders as many of the retailers would now opt to procure textile products from neighbouring States.

Textile prices in Orissa have gone up by six percent as besides four percent VAT, the State government is also charging two percent entry tax. The traders are expected to observe a strike on June 8 also, when they would take out a protest march.

The total turnover of State's textile industry, which has around 700,000 textile traders, comes to around Rs. 200 billion.

Earlier, on May 19, textile traders had submitted a memorandum to the State Chief Minister Naveen Patnaik requesting withdrawal of VAT. He assured that he would look into the matter and urged the traders to not to proceed with their protest plans scheduled for May 24 and 25.

Following this assurance, the traders had dropped the protest plans, but the government did not act. Subsequently, the traders met the State Chief Secretary BK Patnaik, but nothing materialized. The traders assert that they resorted to protest as they were not left with any other option.

On June 7, around 3,000 traders in Cuttack kept their shops shut and carried out a protest march. Calling the State government's imposition of VAT as illogical, they demanded that the tax levy should be immediately withdrawn.

It is being claimed that due to the State government's arbitrary decision, the traders are suffering heavy losses. This is mainly because the State meets its overall requirement for textiles from other States, and if the tax is levied, the traders would be compelled to pass on the burden to customers.

A delegation of wholesale textile merchants from Berhampur also handed over a memorandum seeking withdrawal of VAT to the Joint Commissioner of Commercial Tax. It was addressed to Finance Minister Prafulla Chandra Ghadei.

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. Presently, around 550 products are subject to VAT.

Fibre2fashion News Desk - India

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search