Addressing a press conference here on Saturday, he said Andhra
Pradesh was the only State to levy 5 per cent VAT on textiles, leading to flow
of business to the neighbouring States. “About 40 per cent of all trade happens
on wedding purchases. Instead of buying here, customers are travelling to
neighbouring States,” he said.
“It is impacting about 10,000 wholesalers and one lakh retailers. A good number
of them are on the verge of closure,” he said.
The biggest challenge for textile traders is that most of them sell on credit
that lasts for months. “But we have to pay the tax immediately. This will add to
our financial woes,” he said.
Hindu Business Line, India, dated