INDIA: Haryana cotton mills oppose VAT
Cotton yarn mills in Haryana state announced on three-day strike to protest against imposition of market fee on cotton and Value Added Tax (VAT) on cotton yarn.
O P Mata, President North India Rotter Spinner Association stated that the Government has imposed these additional taxes in the Haryana state, however there is no VAT on cotton yarn in Delhi and Rajasthan Government has fixed only two per cent VAT.
Mata informed that the cotton yarn was already in the field of sales tax in the state.
Further, he explained that already the cotton mill owners are suffering through sick business time and economic problems due to slump in economy and trade rivalry.
If the taxes at the rate of 4 percent would be imposed on the market fee on cotton and VAT on cotton yarn the industry would be completely cleaned out, he added.
Source: bharattextile.com