The Hindu : New Delhi News : Traders to protest against VAT

Online edition of India's National Newspaper
Monday, Jan 31, 2005

New Delhi

New Delhi

Traders to protest against VAT

By Our Staff Reporter

NEW DELHI, JAN. 30. The Confederation of All India Traders (CAIT) will observe a day-long "All India Trade Bandh" on February 1 to protest against "draconian provisions" of the Value-Added Tax (VAT) laws and imposition of service tax on road transporters. Claiming support from major trade federations and market associations of different States, CAIT demanded withdrawal of both the taxes.

According to the CAIT chairman and former Union Minister, Vijay Goel, the Union Government has failed to take cognisance of the traders' issues about certain provisions of VAT and launch a massive nation-wide agitation if their grievances were not addressed immediately.

Claiming that traders in more than 13 States including Gujarat, Maharashtra, Himachal Pradesh, Rajasthan, Madhya Pradesh, Uttaranchal, Bihar, Jammu and Kashmir, Uttar Pradesh, and Jharkhand have decided to support the nation-wide protest, Mr. Goel said various traders' associations have already submitted their points of dissent but the Government has "intentionally" made traders liable to new taxes that will lead to their victimisation.

He alleged that according to Excise Act provisions, traders would be loaded with much more paperwork and subjected to harassment and victimisation. He said with just two months left for implementation of VAT still the administrative preparedness was lacking in different States while an ordinary trader was not at all aware about the new tax regime. Under such circumstances, implementing VAT would not only create confusion in the market would also adversely affect business in the country, he added.

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