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Orissa textile merchants continue stir over VAT
Jun '11
Orissa Garments' Association (OGA) and All Orissa Textile Merchants' Association (AOTMA), who are protesting against the State government's move to impose a four percent Value Added Tax (VAT) on textile products, continued their protest for the second day on June 8.

The textile traders in the State closed their shops and held rallies at different places in the State including the capital Bhubaneswar. The representatives of OGA and AOTMA submitted a memorandum to the Chief Minster Naveen Patnaik for withdrawal of the VAT on textile items.

AOTMA has warned that the traders will intensify the agitation if VAT is not withdrawn by the government.

Meanwhile, the Orissa government has asked the Finance Secretary to submit a report on the VAT rate on textile products in various States across India.

Fibre2fashion had reported yesterday that traders fear that the price of clothes in Orissa will increase by six percent due to imposition of four percent VAT and two percent entry tax.

This would make the retailers turn to the adjoining States like Andhra Pradesh, Chhattisgarh, Jharkhand, and West Bengal, where VAT is not imposed on textile items.

Fibre2fashion News Desk - India

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