The Hindu : Front Page : Truckers end strike

Online edition of India's National Newspaper
Sunday, Aug 29, 2004

Front Page

Truckers end strike

By Our Special Correspondent

NEW DELHI, AUG. 28. The All-India Motor Transport Congress (AIMTC) today called off its seven-day-old strike after it worked out a mutually acceptable agreement with the Government covering the contentious issue of service tax as well as other demands.

Announcing the end of the agitation following the conclusion of marathon talks between the truckers and Finance Ministry officials at 3 a.m. today, the AIMTC president, B.S. Dhumal, told mediapersons that it had been agreed that a joint committee, comprising representatives of the truckers and the Government, would look into the issues of service tax and tax deduction at source.

The Union Revenue Secretary, Ms. Vineeta Rai, however said that truck owners and operators were out of the purview of service tax.

The Government has not yielded any ground insofar as the levy of service tax on cargo booking agents and truck companies are concerned. It is the modalities in relation to the enforcement of the service tax regime that would be worked out on the basis of the recommendations of the joint committee.

In any case, the end to the strike, which began on August 21, has come as a major relief to the common man as the prices of essential goods were rising. As per the agreement, the Government will make suitable rules/notifications to make it clear that truck-owners and operators are not required to pay or collect the service tax.

Report in two months

The joint committee would submit its report within two months, Ms. Rai said. The Government would take measures to withdraw the cases against the arrested truckers.

``Steps will be taken by the Income-Tax Department to simplify the problem of refund,'' she said. The Government recognised that procedural problems existed in refund of the tax deducted at source.

According to the second agreement signed by Mr. Dhumal and the Surface Transport Secretary, Dhanendra Kumar, the Government has agreed to examine the problems faced by the transport sector relating to scrapping of old vehicles.

Toll tax

On the issue of toll tax, Mr. Kumar said the committee set up on the issue would be asked to make its recommendations soon. Fresh directives would be issued to the State authorities for ensuring safety on the highways. While Mr. Dhumal said the committee on service tax would have nine members including six from the AIMTC, Ms. Rai clarified that the composition and other modalities would be firmed up in the next two to three days.

On the revenue implication of the agreement, Ms.Rai said as such the Government expected to collect about Rs. 2,000 crores in a financial year from the booking agents but the impact of implementing the new measures would be felt after five months. While appealing to the truckers to resume their operations, Mr. Dhumal thanked the CPI (M) general secretary, Harkishan Singh Surjeet, whose mediation paved the way for fruitful talks.

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