Textile traders in Andhra Pradesh (AP) are observing a bandh today to protest the imposition of 4 percent Value Added Tax (VAT) by the State Government.
The decision was taken by Andhra Pradesh Federation of Textiles Association (APFTA) early this week.
Even in 1992, Government tried to impose Entry Tax on textiles, but withdrew its decision as the traders protested against this decision, said B V Narasimha Rao, President of VAT Action Committee, Krishna District.
Calling VAT "a can of worms," Rao said that implementation of this new tax would not only trouble customers but also allow government officials to harass textile traders.
Demanding immediate withdrawal of this tax, the committee organized a rally and submitted a memorandum to District Collector, Navin Mittal.