Wednesday, February 1, 2012

Ministers differ over VAT on textile traders

The imposition of Value Added Tax on textile traders found its echo in the State Cabinet meeting on Monday when it caused heated exchanges between Ministers who were supportive of levy of VAT and those who wanted its withdrawal on the ground that it would ultimately hit the common man, the Congress vote bank. The development follows a recent request by Cooperation Minister Kasu Venkatakrishna Reddy who wanted Chief Minister N. Kiran Kumar Reddy to consider lifting of VAT at least in a phased manner. Labour Minister Danam Nagender raised the issue seeking withdrawal of the tax on the ground that the traders would devise ways to evade the tax or pass the burden to customers. Primary Education Minister S. Sailajanath, however, objected to the request, saying that the government should not be seen as favouring traders, a well-to-do section.
Source: The Hindu

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