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'Abolish service tax'

By Our Staff Reporter

PONDICHERRY, JULY 18. The Pondicherry Goods Transporters Association has urged the Centre to drop its move to impose service tax on goods transport companies as `it is a draconian measure `. Addressing newsmen here on Saturday, the president of the Association R. Elumalai and its General Secretary A. Peer Mohammad said that when the present Finance Minister. P. Chidambaraman had sought to impose service tax during his earlier tenure in 1997 there was a wide protest and consequently it was jettisoned. Now an attempt had been made in the Central budget by Chidambaram to revive the tax.

The office bearers of the Association said that already the goods transport companies were bearing the brunt in frequent hike in prices of petrol and diesel. The road transport sector covered by the Road Transport Act and rules had been imposing hefty fees to get permits and also towards road taxes and other levies. They said that the service tax was not imposed on goods despatched by the railways and hence imposition of the tax for road transport was `unjustified and unwarranted`.

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