Textiles to attract VAT from Apr '06: Chandra

All textile items will come under value added tax (VAT) from the next fiscal year, empowered committee secretary Ramesh Chandra said.

States have agreed that the VAT rate on textile items will not exceed 4% when it is implemented from April 1, 2006, Chandra said at a traders conference.

At present, textile items attract additional excise duty and are exempt from VAT.