Related Keywords: cotton yarn and cloth, Garg Acrlyics, imported yarn, level playing field for Punjab industry, local yarn industry, not able to compete with outside industries, Oswal, Punjab government reduces VAT, Rajasthan around two percent, running below capacity, tax structure, VAT imposed in UP on cotton yarn, yarn industries, zero percent
Local yarn industry was not able to compete with outside industries as there tax structure on yarn is in the range of 0-2 percent very low compared to the tax structure of Punjab. With the Punjab government reducing the value added tax (VAT) on cotton yarn and cloth from 6.05 percent to 3.63 per cent, now the gap has been reduced.
VAT imposed in Uttar Pradesh on cotton yarn is zero percent while in Rajasthan, it is around two per cent.
