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Textile traders upset with Govt for 5 pc tax hike

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Textile traders have opposed the tax proposal of Delhi Government where a 5 per cent tax has been levied on all kind of textile and fabrics except khadi and handloom.

Textile association of India
Textile traders upset with 5 per cent hike on textile and fabrics

“Wholesalers tell me that with the raw material costing 5 per cent more, the finished products would cost 5 per cent more too. Buyers would look at Gurgaon and other parts of Haryana because of this and Delhi would lose its distribution character,” President, Khan Market Traders’ Association, Sanjiv Mehra was quoted by TNN in saying.

President, Sarojini Nagar Traders’ Association, Pramod Kumar was quoted by TNN is saying “The customers would have to bear the higher tax on both the raw material and finished product. It’s a double whammy.”

Member of (India), J B Soma, has said that the traders would write to the Government to roll back the hike. Traders have also mentioned that other manufacturers in Surat, Mumbai, Malegaon, Erode, Gorakhpur, Kanpur, Amritsar and Ludhiana are not paying an tax on textiles or fabrics.

“I think it’s plain irrational to slash tax on ready-made garments that cost over Rs 5,000 to 5 per cent, but levy 12.5 per cent tax on cloth that costs Rs 50,” Mehra was quoted by TNN in saying