VAT: Textile merchants in AP on warpath

Vijayawada, Feb 22 (UNI) In response to a call given by the Andhra Pradesh Federation of Textiles Association (APFTA), more than two lakh textile merchants in the state today observed a bandh protesting the imposition of Value Added Tax (VAT) by the government.

Talking to UNI here, Krishna District VAT Action Committee President B V Narasimha Rao said the government tried to impose Entry Tax on textiles in 1992 but withdrew its decision following protests from traders.

Now, the government had imposed four per cent VAT on textiles, he said demanding its immediate withdrawal as 'it will not only burden the customers but also open a Pandora's box leading to harassment by officials.' A rally was organised by the merchants in the main thoroughfares of the city. They later submitted a memorandum to District Collector Navin Mittal.

Mr Rao said the merchants would observe a hunger strike for three days from tomorrow before their shops. A 'Chalo Hyderabad' programme was being planned with the participation of more than one lakh merchants during the first week of March to exert pressure on the government to withdraw VAT.

A memorandum will be submitted to Chief Minister Y S Rajasekhara Reddy later, he added.

UNI CS GM PK DS1307