AP govt exempts handlooms from VAT: YSR

Hyderabad, Nov 11: Andhra Pradesh Chief minister Dr Y S Rajasekhara Reddy today announced that his government has exempted handlooms from taxes under VAT being implemented in the state since the last two years.

Talking to newsmen here, he said the state government has approved the recommendations of the expert committee on weavers and handloom garments would be exempted from VAT and invest Rs 100 crore to set up apparel parks in the state.

Stating that the government would also pay exgratia of Rs 1.5 lakh to the next of the kin of weavers who had committed suicide with effect from April one, 1997, due to debts and financial problems, he said the amount would be paid on submission of proper proof to the government.

Dr Reddy said his government has also released Rs 41 crore as equity contribution to the Andhra Pradesh Co-operative (APCO) Weavers Society to strengthen the soceity, Rs 2 crore to set up weavers bazaars and Rs 50 crore to set up a raw meterial centre in the state.

UNI