The Garment Manufacturers Association of Kerala has urged the government to drop the move to impose 5 per cent VAT on garments.
In a statement, P.K. Rajeevan, president of the association, said there was no VAT on garments in other States and that the move was a big blow to the garment makers as they needed to source the raw materials for dress-making from outside Kerala.
Rajeevan said that already there was an additional excise duty on garments imposed by the central government and sales tax by the state government on readymades.