Textile traders in the South Indian state of Andhra Pradesh will observe a one day strike on February 27 to protest against the state government’s decision to bring textiles under Sensitive Commodities list, the Andhra Pradesh Federation of Textile Associations has announced.
The Federation said the government’s move would put an extra cost on textile traders in the state, who are already burdened by the implementation of value-added tax (VAT) on textiles.
At present, Andhra Pradesh is the only state that collects VAT on textiles, Ammanabolu Prakash, president of the Federation, told reporters.
To pressurize the state government to withdraw textiles from the Sensitive Commodities list, the traders have also decided to temporarily stop purchasing textiles from other states, particularly Maharashtra, Gujarat and Karnataka.
Traders anticipate that textile manufacturers in those states would put pressure on the Union Government for roll-back of the Andhra Pradesh government’s decision.
