Tomorrow, March 17th all the Garment shops in Vijayawada City will remain closed. As the Central Government levied 2% excise duty on readymade garments in the 2016-17 Budget, the manufacturers said that the cost of readymade garments would increase by five to ten percent in the retail market. Opposing the excise duty on readymade garments, the manufactures announced strike on March 17th.
They also explained that Central government already imposed 2% sales tax and 5% value added tax. Now with additional 2% excise duty there would be an additional burden on the industry.
On the other hand, the Central government excise department officials explained that the excise duty is applicable to only above Rs.1000 readymade garments. But, the traders are arguing that even a pair of readymade trousers cost more than Rs.2000 and a shirt cost Rs.1500
