Industry & Economy
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Textiles
Kerala garment dealers oppose entry tax
Our Bureau
Kochi
,
Feb. 6
THE Kerala Government's move to impose entry tax on textiles and garments entering the State has come in for sharp criticism from the Kerala Textiles and Garments Dealers Welfare Association.
In a letter addressed to the State Finance Minister, the association has pointed out that the imposition of entry tax will be counter-productive since the additional tax burden will eventually be passed on to the customer, making textiles and garments costlier.
Kerala is primarily a consumer of textiles and it depends on neighbouring States for most of its textile and garment requirements. As such, it does not have much of a domestic textile industry to protect by such imposts, the letter argued.
As per the Additional Excise Duty Act of 1957, the Union Government decided to impose AED on textiles, tobacco and sugar, and the State Governments were not empowered to impose sales tax on these goods.
The AED was meant to enable the free flow of trade in these commodities throughout the territory of India and the imposition of entry will kill the very spirit behind this free flow of trade, the letter argued.
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