Monday, March 14, 2016
The Andhra Pradesh Apparel Manufacturers and Marketers’ Association (AMMA) has called for a Statewide bandh on March 17, 2016 in protest against the imposition of 2 per cent excise duty on readymade garments.
AMMA president G.V.S Harischandra speaking to press said that the readymade garment manufacturing industries were bogged down by 2 per cent Central Sales Tax and 5 per cent Value Added Tax. The excise duty proposed in the Union Budget would result in at least 6 per cent hike in the maximum retail price of garments. The secretary of the Association questions the rationale behind levying of excise duty when efforts were being made to replace the archaic tax structure with Goods and Service Tax. The excise duty was sought to be collected on sales prices exceeding Rs.1,000 but there was no guarantee that cheaper items would not be brought under the tax net.