Textile traders in Andhra Pradesh have renewed their demand with the government to withdraw the five per cent VAT levied on them. They say the trade is largely unorganised and this is causing a burden to them.

According to Santosh Chokhani, vice president, Andhra Pradesh Federation of Textile Associations, no other state has VAT on textiles. He said the small entrepreneurs are badly hit. This apart, the Andhra Pradesh government has brought the textiles under the ‘sensitive commodities’ with effect from February 25 making it difficult for the textile traders to evade VAT, he said.

“With VAT, the traders will be forced to look at options in other states and this will impact,” he said, adding that agitation will be intensified with ‘complete bandhs’. The traders have observed bandh for the third day and this has impacted several skilled and unskilled workers and daily labour.