Textile traders protest VAT imposition in AP

Hyderabad: About 80,000 textiles shop owners across Andhra Pradesh downed shutters on Wednesday, protesting against imposition of four per cent value-added tax on `made-ups'.

They demanded that the Government withdraw the amendment made to the Act that brought `made-ups' used mostly by the poor and middleclass under the Schedule IV, which attracted four per cent VAT.

They said the amendment would adversely impact the livelihood sources of 70-80 lakh people who depended on the textile business directly and indirectly.

Addressing a press conference here on Wednesday, Mr Ammanabolu Vijay Kumar, President of AP Federation of Textile Associations, said the expression `made-up' was conveniently used to slap the tax on items such as towels, zari, embroidery, pillow covers, blankets and bed sheets that were widely used by the common man.

He said these items were deliberately kept away from taxation for the last 50 years by the Governments keeping in mind the widespread use of such items by the people. 'These will become costlier, thanks to the new amendment,' he said, pointing out that no other State collected tax on these items.

The Centre used to collect additional duty at the source and distribute to States.

Not only that, thousands of people, including traditional embroidery artisans and women from self-help groups, who depend on adding value to the textile products would be hit very badly.

On the Government argument that the sector made money on some very high value products such as sarees, Mr Vijaykumar wondered how many of such sarees were sold in the State. 'Only a small number,' he said and added that it couldn't be an excuse for bringing all textile products under the VAT,' he said.

He also alleged that though the Government brought a GO in August last amending the relevant part, it didn't care to inform the stakeholders immediately. He also blamed the officials of the Commercial Taxes Department for harassing the association members.

Reminding that the association had withdrawn bandh call sometime back after getting an assurance from the Chief Minister, he said the Government failed to respond and hence the revival of the protest plan.

The association would continue its protest in the next three days. 'Our members will go on relay hunger strikes from February 23 to 25. They will also organise rasta rooks and rail rooks,' he said.

Mr Vijay Kumar warned that they would continue they agitation until their demands were met.