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Punjab Chief Minister Parkash Singh Badal, who met a delegation of cloth traders and merchants from the state, announced that no VAT would be imposed on these articles.
CM Badal made this announcement in the presence of Industries Minister Manoranjan Kalia and Excise and Taxation Commissioner A. Venu Prasad.
More than 100 persons had gone to meet CM along with Kalia and Anil Joshi, BJP MLA from Amritsar, Bhupinder Gupta, president of North India Retail Merchants’ Association, said.
The Punjab Excise and Taxation Department had started imposing 4 per cent VAT on unstitched cloth in the wake of a recent judgment by the Punjab VAT Tribunal.
The traders had been opposing the move and many truckloads of unfinished dress material were held up at various entry points in the state. Sources said 19 trucks carrying suits and saris were held up at the taxation office at Shambhu border, near Rajpura.
Punjab BJP president Rajinder Bhandari has urged Kalia to sort out the matter.
The garment sellers had been saying that nowhere in India VAT was being imposed on unstitched cloth. “The tax is imposed only on stitched garments, and we are paying it” said Sanjay Arora, owner of Kalamandir Store on Mall Road in Ludhiana who had received a notice from the department.
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