City's textile traders have heaved a sigh of relief with the Andhra Pradesh (AP) government deciding to levy and collect only one per cent value-added tax VAT on any level of business turnover above Rs 7.5 lakh instead of 5 per cent at present.

The textile traders in AP had announced an indefinite strike from April 30 to protest the government's decision to levy five per cent VAT on the business turnover. This had a major impact on the local textile industry.

Now, with the roll back in the VAT by the government the textile traders are planning to call off the indefinite strike. Surat is the top destination from where the textile traders of AP purchase the textile fabrics, including saris and dress material. About Rs 7 crore worth of saris and about Rs 2 crore worth of dress material are supplied to AP on daily basis.

Sources said AP is a key market for the polyester saris manufactured in the city after Delhi, Mumbai, West Bengal, Bihar and Uttar Pradesh. The designs and colour combinations preferred by the consumers in AP is different from other centres, which is taken care of by the textile traders in Surat.

A textile trader dealing with the traders in AP Pankaj Agarwal said "The government of AP has taken a wise decision with the roll back in the VAT charges. We mainly cater to the wholesale buyers in Andhra Pradesh and it would have been a big loss for the industry if the textile traders would have gone on an indefinite strike."

A leader of Federation of Surat Textile Traders Association (FOSTTA) Jay Lal said, "The textile traders are happy with the rollback in VAT charges."