The list which includes woven fabrics of silk, silk waste, carded wool, cotton, synthetic filament yarn, artificial filament yarn, synthetic staple fibre, artificial staple fibre, woven pile fabrics and chenille fabrics of wool, cotton or man made fibres, terry towelling and related products, also covers a wide variety of fabrics with industrial applications.

The move follows representation from the textile sector to roll back the 5 per cent VAT levied on fabrics from July 12. The industry has been impacted the sluggish demand in the international markets which has affected exports and resulted in stocks piling up. The levy of VAT earlier this month hit the competitiveness of the industry as compared with its counterparts in other States.

Source : Hindu Business Line, India, dated 21/07/2011