Chandigarh-based Northern India Textile Mills' Association (NITMA) has welcomed and the Punjab Government's announcement to reduce the VAT on cotton and yarn from 6.05 per cent to 3.63 per cent in the state budget.
In a press release, it said Punjab has close to 165 spinning mills with 4.25 million active spindles with annual consumption capacity of 6.5 million to 7 million bales.Chandigarh-based Northern India Textile Mills' Association (NITMA) has welcomed and the Punjab Government's announcement to reduce the VAT on cotton#
Due to higher VAT in Punjab, the textile industry was facing tough times and weaving industry preferred to purchase yarn from spinners from Himachal, UP and Uttrakhand. The spinners from neighboring states used to sell yarn at 2 per cent VAT.
“This reduction in VAT will help Punjab's spinning sector compete in the market.” said NITMA president Hardyal S Cheema. (SH)
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