Chief Minister Mr Kirankumar reddy today refused to withdraw VAT (Value Added Tax) on cloth sales in the state saying that the AP Government has been following the tax policy being implemented in other states.

Making the government stand clear to the cloth merchants who met him this afternoon at his camp office in Hyderabad, Kirankumar reddy told them the government has imposed VAT on cloth merchants having heavy turnovers.

The Government has imposed 1 per cent VAT on cloth shops having a turnover of Rs.5 lakh to Rs.40 lakh per annum and 5 per cent VAT on cloth shops having a turnover exceeding Rs.40 lakh per annum. There is no VAT on cloth shops and merchants having a turnover below Rs. 5 lakh per annum.

The cloth merchants have been demanding the cancellation of VAT totally saying they would be put to suffering.

“How can you demand removal the VAT on cloth merchants doing business in crores of rupees? We are not taxing the small merchants. It is not good on your part to resort to dharnas and demonstrations on this issue,” he reportedly told them.

Cloth merchants resort to dharnas

Cloth merchants across the state are continuing their agitation against the VAT imposition and have resorted to demonstrations and dharnas at several places. Most of the cloth shops across the state remained closed today also. (JUBS)