Cloth merchants to protest against VAT

Vijayawada, Mar 20: Nearly one lakh textile merchants in Andhra Pradesh will embark on a 'Chalo Assembly' programme on March 22 to exert pressure on the state government to remove the four per cent Value Added Tax (VAT) on clothes and readymade garments.

Talking to UNI here today, Krishna District VAT Action Committee President B V Narasimha Rao said demonstrations and a huge rally from Narayanaguda to Assembly will be held on the day.

Even as merchants were protesting imposition of VAT, the government was planning to extend it to all varieties of cloth and readymade garments from April 1, 2006, he charged.

Mr Rao recalled the government had to withdraw its decision to impose Entry Tax on textiles in 1992 in the wake of protests from the traders.

The imposition of VAT will not only burden the customers but also open a pandora's box leading to harassment by officials.

He said a memorandum would be submitted to Chief Minister Y S Rajasekhara Reddy on the issue.

UNI