Readymade garments traders and textile merchants downed shutters in Vijaywada yesterday, demanding that the centre roll back two per cent excise duty immediately.

They held a rally from Lenin Centre to the sub-collector’s office raising slogans and later submitted a memorandum to the sub-collector. Urging the government to withdraw its proposal, they said, “We are ready to fight it out.”

The traders opined that branded garments will be out of reach for middle class sections with the implementation of two per cent excise duty. They were already paying five per cent excise duty and with the additional two per cent, it will drive them into severe losses.

President of Apparel Manufacturers and Marketers Association (AMMA) G V S Harishchandra said, “The garment sector is already crippled and this additional tax burden will wreck the business. More than 60 per cent of small-scale readymade traders will suffer severe losses.”

He said the garment sector generates the second highest employment after agriculture in the state. Members of Vijayawada Textile Merchants Welfare Association expressed solidarity by closing shops in Vasthralatha and Krishnaveni cloth market.