State government on Sunday decided to remove Valued Added Tax (VAT) on textile traders.
A decision to this effect was taken by Chief Minister N kiran Kumar Reddy after the Cabinet sub-committee which held discussions with the textile traders on Sunday. Ministers Anam Ramanarayana Reddy, T G Venkatesh and Prasad Kumar told newsmen that there would not be any alternate tax. The Chief Minister also promised to remove 1 per cent tax on the turnover.
Earlier, the cabinet sub-committee met on Sunday to finalise lifting of Value Added tax on cloth merchants imposed in the State. The ministers and the senior officials had a meeting in the Secretariat. They discussed about the GOs issued earlier on VAT related issues. The cabinet sub-committee also had a discussion with the representatives of the cloth traders. The textile traders launched an agitation demanding removal of VAT on textile business. The ministers may take a decision soon on the VAT. The government is likely to lose an income of Rs 2,000 crore.