Bhubaneswar, June 6: The textile merchants of the state will go on a two-day strike from tomorrow in protest against the imposition of value added tax (VAT) on textile products by the state government.
Orissa is the only state, which has imposed VAT on textile fabrics, said All Orissa Textile Merchants’ Association president, R.N. Mahapatro.
The state government had imposed a 4 per cent VAT on textile fabrics on April 8 and enforced it on May 3. Though Rajasthan and Jharkhand governments have withdrawn the VAT following protest, the levy of VAT was imposed on May 3 this year in Orissa.
“We have been protesting against the imposition of VAT on textile fabrics since the very day of enforcement on May 3. Though the state government had assured the Association of favourable consideration. But till date, we have not received any communication from the government and are continuing to suffer financial loss,” said the association president.
Mahapatra said a delegation of textile traders had met the chief minister on May 19 and submitted a memorandum. Later, they discussed the mater with the finance secretary.
The traders postponed their proposed strike scheduled on May 24 and 25 following assurance from the government for reconsideration of the matter.
“However, Orissa government is keeping silence after a lapse of 30 days,” he said.The officials at the check gates are collecting 4 per cent VAT and 2 per cent entry tax on textile products, which makes the products costlier.
“Due to higher costing of textile products in comparison with neighbouring states, the traders are not able to sell the goods, the traders said.
“The consumers are also suffering by paying higher prices on the textile products. For example, a consumer is paying Rs 20 extra on a cotton saris and Rs 40 to 50 extra on fancy saris,” said Mohapatra.
“Under these circumstances, we find no other means but to go for agitation”, said the association leaders, adding that the textile traders have decided to down their shutters tomorrow and day after.
The association’s general secretary, Mohanlal Jain, said the traders would take out a protest rally in Cuttack tomorrow and hold another rally at the state capital the next day.
