A resolution is passed in the Assembly today removing the VAT on textiles. An amendment of VAT Bill is made in the Assembly today as per which VAT exempted on textiles.
Although scrapping of VAT on Textiles was already announced by the Chief Minister on 29th April and the Chief Minister in turn was already felicitated by the Andhra Pradesh Federation of Textile Association on 4th May, it is passed in the Assembly today.
The Government of Andhra Pradesh appointed a Cabinet sub-committee under the leadership of the State Finance Minister Anam Rama Narayana. As the dues on VAT amounted to Rs.9000 crores a sub-committee was appointed to study it and report on it. The sub-committee after studying the issue recommended CM that VAT should be scrapped which was followed by the Chief Minister and announced it.