Textile bodies hail VAT relief on cotton fabrics

Textile industry associations heave a sigh of relief over the State Government's move on removing the 5 per cent VAT on cotton fabrics and related products. Thanking the Chief Minister, Ms J. Jayalalithaa, for considering the association's representation favourably, the Southern India Mills Association Chairman, Mr J. Thulasidharan, said the decision to remove VAT on cotton fabrics is in the right direction. This would benefit the powerloom sector in and around Avanashi and knitted garment sector in Tirupur, made-up sector in Karur and Madurai. The textile industry is in a reviving mood and this move would regain its competitiveness once the Centre announces a bail out package and restores export benefits.