APFTA General Secretary Soma Dayananda said the imposition of five percent VAT is adversely affecting the traders in the State as merchants from the neighbouring States of Tamil Nadu, Karnataka and Chhattisgarh are flocking to other States for procuring textiles, in order to avoid paying VAT.

He informed that no State except Andhra Pradesh has implemented levying of VAT on textile business. He added that the representatives of APFTA have met Chief Minister N Kiran Kumar Reddy a couple of times on the matter, but they have not received any positive response from his side.

Convener of twin cities VAT joint action committee, A Prakash, said they have decided to submit memoranda to Ministers, MPs and MLAs on the matter and also hold rallies. He added that a regional meeting would be held in Warangal on Tuesday to decide on the future course of agitation if VAT is continued.

Source: Fibre2fashion.com, India,  dated 15/11/2011