The Andhra Pradesh Federation of Textile Association representing some 75,000 textile shop owners, has called for a total textile bandh in the State on Wednesday.
This is to register its protest against the State Government’s move to bring textiles under Sensitive Commodities, which would put an extra financial burden on traders.
Traders have also decided to stop buying textile products from other States, especially Maharashtra, Gujarat and Karnataka, so that manufacturers in those States would put pressure on the Centre for roll-back of the Andhra Pradesh Government’s move.
Currently, about 50-60 per cent of the textiles products sold in the State come from Maharashtra.
Ammanabolu Prakash, President of the association, said it was unfortunate that the State Government should bring textile under Sensitive Commodities, which is for the first time in the history of Independent India. “That this should come at a time when we are protesting against implementation of VAT on textiles is more unfortunate. Currently, AP is the only state to have VAT on textile,” he told media persons here today.
He was surprised that textile hubs such as Maharashtra and Gujarat were not having VAT although the textile industries there had a much bigger turnover than Andhra Pradesh.
“The Government has brought textiles under Sensitive Commodities so as to indirectly make textile traders register under AP VAT. We are demanding withdrawal of VAT till a uniform tax regime is in place in the country,” he said.
The association said it may think of going in for indefinite bandh if the State Government does not relent.
Textile traders in the State have a combined turnover of about Rs 30,000 crore.