Close to the elections, Knitwear club has written to the Chief Minister Parkash Singh Badal to abolish the recently notified advance VAT tax. Vinod Thaper, President of the club said, Punjab government has harassed the industry with the notification regarding Advanced Vat Tax, which is soon going to be implemented on goods imported from other states for trading, manufacturing and processing. This news has bewildered the hosiery industry.
The members in their letter to the CM stated that it seems that the state is in no mood to give relief to the industry and do not want businesses to flourish. The members, playing the election card, stated that the hosiery textile industry have been supporting political parties to form the government for the last three decades and without their support no party can come into power. The members warned, If the advanced VAT tax is not withdrawn, it will have a dreadful impact on the forthcoming elections of the Punjab government.
The Excise and Taxation Department has also stated that the Input Tax Credit, which is given back to the industry, will now be given in the last quarter of the year. Industrialists will have to deposit 25 per cent of the advanced VAT tax earlier and the rest will be taken in the last quarter.