Mumbai Textile Merchants' Association want VAT on fabrics to be abolished but favour continuing additional excise duty on fabrics.
It has put forth this suggestion in a pre-budget memorandum sent to Finance Minister.
At present textile fabrics do not come under purview of sales tax and VAT.
Association President, Surendra Tulsidas Savai said that, textile fabrics should continue to be excluded from VAT regime.
Last year, excise duty abolition on fabrics had buoyed up local cloth markets and abolition of quota system had pushed up value-added textile export, he said.
An investment of Rs 1,40,000 crore in next couple of years in textile industry will double the exports, contended Savai.
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