The Andhra Pradesh Federation of Textile Associations, representing over 100,000 traders, will be observing a bandh on January 24, 2013, in protest against the value-added tax (VAT) being imposed on textiles, according to federation president Ammanabolu Prakash.
“We are not against payment of VAT. We, however, are demanding that the state government keep the 1% VAT in abeyance till the Centre implement the goods and services tax (GST) / VAT across the country,” he told mediapersons here on Monday.
Stating that four states – Orissa, Jharkhand, Rajasthan and Tamil Nadu – had earlier imposed VAT on textiles but later rolled back their decision in the interest of the traders, Prakash said the way in which the Andhra Pradesh government was computing the VAT was complicated, creating confusion among small traders in the state.
“The state government has issued an ordinance on November 5, 2012, levying 1% VAT on textiles. However, the textile traders will have to bear the burden of 3% VAT as it is levied at the stages of manufacturing, wholesaler and retailer, before it reaches to the consumer,” he said.
The federation members have decided not to pay the 1% VAT on textiles till the central government imposes uniform tax across the country, Prakash said, adding that the textile trade in Andhra Pradesh was expected to incur a loss of between Rs 10 crore and Rs 15 crore on account of the one-day bandh.
