Hyderabad: The Telugu Desam party has demanded immediate withdrawal of the newly imposed four per cent VAT (value added tax) on cloth and sugar.
In a statement here on Tuesday, the TDP leader in the Council, Mr Dadi Veerabhadra Rao stated that the cost of cloth has shot up because of the increase in the prices of raw materials like yarn and polymer. Imposition of VAT has further increased the prices, taking clothes out of the reach of the common man, he said. Similarly, the addition of VAT on sugar also made the lives of the poor unbearable. He said it was strange that VAT was imposed on sugar in Andhra Pradesh alone in the entire country.
Stating that imposition of VAT had also adversely affected the sugar industry, Mr Dadi said now a bag of sugar in the State was costing Rs 100 more and other States had stopped purchasing sugar from the State mills. He said as there were no buyers, sugar stocks had piled up in the godowns and the millers were unable to clear the dues of farmers.
He said the sugar mills, which were already facing financial difficulties because of ban of export of molasses to other States, would face further losses because of the new tax. He said the government should think over the problem and immediately withdraw the VAT as it was affecting the lives of lakhs of farmers and workers of the sugar mills which might end up in closure.