SISPA seeks reduction in VAT on cotton from 5% to 2%

South India Spinners Association (SISPA) has asked the Tamil Nadu government to reduce VAT on cotton, cotton yarn and synthetic yarn from five per cent to two per cent to make the state's spinning industry viable.
In a resolution adopted at its Annual General Meeting held yesterday, SISPA said that CST in neighbouring states was only two per cent, while five per cent VAT in Tamil Nadu has made locally manufactured goods expensive, when sold within or in other states.
The association also urged the government to abolish one per cent cess on sale of cotton and waste cotton.
In another resolution, SISPA appealed to the government to create a level-playing field among all electricity consumers and allow even small and medium enterprises to purchase power under Open Access System.

It also urged the government to provide capital subsidy for purchase of new energy efficient motors and energy saving electrical equipment to make the industry in the state energy efficient.
Asking the Centre to provide seven per cent subsidised interest for procurement of cotton for processing in the state, SISPA also sought seven per cent export incentive to encourage textile industry to export consistently and considerably.