VAT reduced on 28 goods in Bihar
VAT reduced on 28 goods in Bihar
The implementation of the Value Added Tax (VAT) regime on embroidered items is likely to hit over two lakh women - 3000 of them in Rajahmundry and its neighbourhood alone - for whom embroidery work is a source of livelihood.
The VAT regime, expected to come into force from April 1 this year, would mean 4 per cent tax on embroidery items.
The tax is being levied as the VAT regime considers embroidered clothes and sarees as made-up items. Presently, there is no tax on embroidery items.
As a result, fearing tax levy and harassment from commercial tax officials, the clothiers in the city have already stopped endorsing embroidery work to skilled women, who mostly operate as SHGs.
For instance, Katikam Nagasudha of Saisakthi SHG has already wound up her embroidery unit.
More: newindpress.com