Assam textile traders observe bandh to protest VAT

11 Jul '12

1 min read

Textile and garment shop owners in India’s northeastern state of Assam shutdown their shutters on July 10 to protest against the imposition of five percent value-added tax (VAT) by the state government on textile and apparel items.

The Assam Textile Merchants’ Association (ATMA) requested the government to reconsider its decision and rollback the VAT on textiles as it would harm the textile and apparel distributors in the state.

Mr. Subhkaran Maloo, President of ATMA, said textile dealers, wholesalers and retailers from adjoining states currently procure their textile and garment requirements from Assam.

If VAT is imposed, these dealers will stop buying from Assam, and instead source their textiles and apparels from other states like West Bengal or directly from the manufacturers, which, in turn, would lead to collapse of textile trade in the state, he added.

Moreover, the levy of VAT would negatively impact the cottage industries of the state, he said. It is because women and small households purchase fabric in small quantities and then make garments to sell in the weekly markets.

After the levy of five percent VAT, apparels from neighbouring states will become more competitive in prices and hence the cottage industry in the state would be adversely affected.

Fibre2fashion News Desk - India

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