TEA urges Minister to extend VAT reimbursement facility to LT units

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Tirupur, Nov 3 (UNI) Tirupur Exporters Association (TEA) today urged Tamil Nadu Electricity Minister Arcot N Veerasamy to extend VAT reimbursement facility to the Low Tension (LT) units immediately so that the knitwear garment exporting industries would sustain in the global market.

In a letter to the Minister, a copy of which was released to the press here, TEA President A Sakthivel said the state government had issued a Government Order (GO) on October 20, 2008 stating the reimbursement of VAT on purchase of high cost diesel by High Tension (HT) industries for power generation through their captive power gensets.

The above Order had not included LT industries for reimbursement of VAT, he added.

More than 80 per cent of the service connections given to knitwear sector in Tirupur region of Coimbatore Electricity Distribution Circle come under LT industries. But, they were deprived of getting the benefit extended to HT industries, he said.

Due to non extension of VAT reimbursement facility to LT industries, they had to pay additionally Rs 8.74 for every litre of diesel purchased, he added.

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