Traders want 'made up' tax on textiles reduced

Chief minister Y S Rajasekhara Reddy on Monday promised to consider readymade garment and textile traders' request for reduction of tax on 'made ups'. A 12.5 per cent tax is imposed on textiles and readymade garments in the name of 'made up' as per the GO No 1564.

Rajahmundry Chamber of Commerce honorary secretary Ashok Kumar Jain appealed to the chief minister to scrap the GO when the latter participated in the annual celebrations of the chamber.

Responding to the plea, the CM said that he didn't exactly know about the tax. However, he said he would examine the request if such a move would not cause any loss to the state exchequer. He asked the chamber leaders of all the districts in the state to meet him and the commerce minister in this regard.

At the same time, he appealed to traders to solve minor problems on their own keeping in view the larger interests of the state.

He also recalled the stated government's decision of reducing taxes amounting to Rs 40 crore on tea, coffee, iron and others. Rajasekhara Reddy asserted that taxes were key to run the government.

Jain alleged high-handed behaviour of commercial tax officials in implementation of value added tax (VAT).

He cited a Vizag trader who was slapped a fine of Rs 25 lakh without any ground as an example of official harassment.