The Central Excise and Customs department has issued fresh circular that the saris, salwar suit and dress materials sold under the brand name and having retail prices above Rs 1,000 will come under the 2% excise duty tax net which is strongly opposed by the Federation of Surat Textile Traders Association (FOSTTA).

The FOSTTA office-bearers on Saturday announced the formation of a committee headed by the FOSTTA president, Manoj Agarwal, to garner support from the textile traders and spread awareness on the 2% excise duty on the saris and dress material having retail prices above Rs 1,000.

Agarwal said that most of the traders in the markets have been selling their products under the brand name. If the sari and dress material would cost above Rs 1,000, the traders are liable to pay 2% excise duty. This way, the inspector raj will rule in the textile markets.

The excise duty should be levied on the saris, dress material when they reach in the retail shops, he added.

The FOSTTA has decided to send a memorandum to the Ministry of Finance and the Ministry of Textiles stating that the saris, dress material and other fabrics manufactured in the MMF (man-made fibre) hubs should be kept out of the excise duty net as per chapter 54 of the Excise Duty Act.

A meeting of textile traders from all the markets at Ring Road, Sahara Darwaja, Salabatpura etc. have been organized to decide the next course of action against government decision on August 1.