Telugu Desam Party president N Chandrababu Naidu on Wednesday appealed to the state government to lift the 4% value added tax being imposed on textile traders.
Addressing a program organized at the Exhibition Grounds by the Andhra Pradesh Federation of Textile Association, Naidu said that the imposition of the 4% VAT on weavers and textile traders would cause immense financial hardship for these communities.
Stating that no other state in the country has imposed a VAT on clothes, he said that the AP government was trying to extort nearly Rs. 1,500 crore from the traders.
Naidu alleged that though the Centre had lifted the excise duty on weavers, the state government was continuing it in a blatant violation of rules and regulations.
He said that lakhs of people were employed directly and indirectly by the textiles industry, and that their future would be in the doldrums if the new tax is not waived.
He advised the government to increase taxes on mining and belt shops instead.
Communist Party Of India (CPI) state secretary K Narayana warned the government of serious consequences if it fails to lift the VAT on traders. He said that the CPI would organize half-naked processions across the state in protest.
Communist Party (Marxist) state secretary B V Raghavulu expressed serious concern over the imposition of tax on textiles, which he said were a primary need for all people.
He asked the Chief Minister to explain to the people of state what necessitated him to impose tax on textiles. He said that the people would revolt against the government's move if it did not lift the VAT immediately.
Textile traders are observing a 2-day bandh across the state, protesting against the imposition of VAT. The traders are also planning to sit in for relay hunger strikes on Thursday, apart from holding state-wide protests. (INN)