All Orissa Textile Merchants' Association protest against textile VAT

On Tuesday (7/6/11) the All Orissa Textile Merchants' Association had called protest strike by all textile stop. the protest was called for immediate withdrawal of textile VAT. The Union Budget 2011 allowed states to impose tax on sugar and textiles, which were earlier exempted from VAT and were covered under the Additional Duties of Excise (goods of special importance) Act 1957. Over 550 items are covered under VAT. This VAT is said to cause the price of clothes in the state of Orissa  is up by six per cent as the state government is collecting entry tax of two per cent besides VAT. The trader want the tax to be withdrawn immediately by the government.