Date:17/05/2005 URL: http://www.thehindubusinessline.com/2005/05/17/stories/2005051702061700.htm

Back Raincoat makers to protest against VAT anomalies

Our Bureau

Mumbai , May 16

AROUND 500 raincoat manufacturers of Maharashtra have decided to go on a token strike on Thursday in protest against discrimination by the State Government by leaving out raincoats from the 4 per cent VAT structure.

The manufacturers/traders will take out a morcha on Thursday afternoon and proceed to the office of Sales Tax Commissioner, Mazgoan.

The other products including umbrella and rainy footwear have been put under the 4 per cent VAT structure leaving raincoats under 12.5 per cent VAT. Raincoats are manufactured with the help of raw materials like PVC sheet, fabrics etc., and even these attract 4 per cent VAT.

"We will hand over a memorandum to the Sales Tax Commissioner, demanding immediate clarification on the duty structure of raincoat," said Mr Iqbal Memon, President of Federation of Readymade Raincoats Manufacturers' Association, in a release.

In fact, the State Finance Minister, Mr Jayant Patil, has assured the Federation that the oversight will be rectified by the empowered committee. Since the State Government has not issued a clarification most of the business has been driven to other States such as Gujarat and Tamil Nadu, he alleged.

While Gujarat has totally exempted raincoats, both Tamil Nadu and Delhi have imposed four per cent VAT.