Date:26/12/2005 URL: http://www.thehindubusinessline.com/2005/12/26/stories/2005122601161302.htm

Back Tax on garments in Kerala criticised

Our Bureau

KOCHI: The Kerala Textile and Garments Dealers' Welfare Association has criticised the State Revenue Department's decision to impose four per cent tax on garments and textiles, including handlooms and silk items, despite the Union Government exempting them from the purview of the newly-introduced value-added tax regime.

The association described the new tax imposition through Kerala Value Added Tax Amendment Act 2005 as a contradiction to the White Paper brought out by the high-power committee on VAT at the Centre.

It also accused the Revenue Department of not taking the traders into confidence in implementing new tax laws.