Ruling Bharatiya Janata Party and Shiv Sena on Wednesday joined an agitated Opposition in the Lok Sabha in vociferously demanding withdrawal of the decision to introduce value added tax and restore excise exemption to manufacturers of ready-made garments having a turnover of upto Rs 1 crore (Rs 10 million).
"VAT wapas lo (withdraw VAT)", shouted the members cutting across party lines during Zero Hour.
Dissatisfied with the assurance given by Textiles Minister Kanshi Ram Rana that he would convey the feelings of the members to Finance Minister Jaswant Singh, angry Opposition members from Samajwadi Party, AIADMK, Congress and RJD stormed the well.
Sensing the mood of the members, Speaker Manohar Joshi adjourned the House for lunch recess.
"Delhi will never accept VAT. I have been always against it right from the beginning. The day it is made applicable in the Capital, traders will be badly hit," BJP member Madan Lal Khurana said.
Shiv Sena leader Chandrakant Khaire regretted imposition of eight per cent excise duty on ready-made garments produced by small manufacturers in the general budget and demanded its withdrawal forthwith.
Joining Khurana, Jaishree Banerjee (BJP) said cottage industry would be severely affected if the excise duty on ready-made garments was not taken back.
Raising the issue, SP leader Mulayam Singh Yadav and party colleague Ramjilal Suman said the move to impose VAT was aimed at finishing small businesses and paving the way for imported goods to flood Indian markets.
