South India Spinners Association (SISPA) has requested the Tamil Nadu Government to reduce VAT on cotton, cotton yarn and synthetic yarn from the present 5 per cent to 2 per cent to make the spinning industry in the State viable.

In a resolution adopted at its Annual General Meeting held yesterday, SISPA said that CST in neighbouring States was only 2 per cent, while the 5 per cent VAT in Tamil Nadu made goods manufactured locally expensive, when sold within or in other States.

The Association also urged the Government to abolish 1 per cent cess on sale of cotton and waste cotton, a long pending demand of spinners.

In another resolution, SISPA appealed to the Government to create a level playing field among all electricity consumers and allow even small and medium enterprises to purchase power under Open Access System.

It also wanted the Government to provide capital subsidy for purchase of new energy efficient motors and energy saving electrical equipment to make the industry in the State energy efficient.

Urging the Centre to provide 7 per cent subsidised interest for procurement of cotton for processing in the State, SISPA also appealed to provide 7 per cent export incentive to encourage textile industry to export consistently and considerably.