Labour Minister Danam Nagender is cut up with Chief Minister Kiran Kumar Reddy for not taking him into confidence over the decision to reduce VAT on textiles.
Danam was mediating with the government on behalf of textile traders for Value Added Tax reduction. Chief Minister as well as Finance Minister Anam Ramanarayana Reddy made it clear to him that there were problems with any reduction and refused to yield to the demand.
But later, after a meeting of representatives of textile traders with the other Ministers and finally with the CM, the government announced a reduction in VAT from 5 percent to 1 percent. The decision came as a shock to Danam, who had no inkling in this regard.
He reportedly dashed off a letter to the CM, saying that government should clarify as to why VAT was reduced after rejecting the same. The move would raise doubts in the mains of people, Danam said in his letter. He wants the decision to be kept in abeyance till the issue is clarified. The Minister also expressed his anger to principal secretary in CM’s office Binoy Kumar.
Danam is reportedly upset over government’s decision, as he was allegedly expecting something out of the mediation with the government on behalf of textile traders. He kept quiet after the firm stand of the government. He now suspects the government deliberately cut him out of the negotiations and announced its decision.
It is Danam’s turn now to raise doubts about kickbacks behind his back!
