The Hindu : Kerala News : Traders begin three-day anti-VAT stir today

Online edition of India's National Newspaper
Wednesday, Mar 30, 2005

Kerala

Kerala

Traders begin three-day anti-VAT stir today

By Our Staff Reporter

KOCHI, MARCH 29. The State Government and the combine of trade bodies are set on collision course with the Coordination Committee of traders, merchants and distributors sticking to their call for a three-day strike, beginning Wednesday, demanding that "anomalies" in the proposed Value Added Tax (VAT) regime be set right before it is implemented.

M. Jayaprakash, State vice-president of Kerala Vyapari Vyavasayi Ekopana Samithy (KVVES), representing about 1,30,000 registered retailers and wholesalers across the State, said on Tuesday that unless the Government come forward to consider the traders' charter of demands, the agitation would continue.

The trade bodies have submitted a charter of demands, about 50 of them, for the Government's consideration. Mr. Jayaprakash alleged that the Government had not come forward to consider any of these demands "seriously".

Meanwhile, wholesalers in the Ernakulam city markets reported brisk sale after retailers started buying goods in view of the strike. A wholesaler of provisions in the Ernakulam main market said that there was unusual rush at the market.

A spokesman for the Ernakulam Merchants' Union ruled out the possibility of any scarcity of provisions, including sugar and rice. He, however, said that there might be some problem in the rural areas since supplies may not them on time.

It is about a week since wholesalers and distributors stopped taking fresh supplies while the retailers in the city had stopped taking goods during the last three days.

Traders' rider to UDF

Our Staff Reporter writes from Thrissur:

Leaders of the Kerala Vyapari Vyavasayi Ekopana Samithy have said that the support extended by traders was a major factor in the victory of the United Democratic Front (UDF) in the last Assembly election and if the Government insists on implementing Value Added Tax (VAT), traders will vote against the UDF in the coming election.

Addressing a press conference here today, the Samithy vice-president, M. Jayaprakash, said this did not mean that they will support the Left Democratic Front (LDF). There can be other political alliances that are against VAT.

Dr. Jayaprakash said that traders would not comply with the Government's directive that they sign in the registration form for VAT on April 1. However, shops will be kept open after April 1, when a three-day strike of the traders comes to an end. But they will function under the earlier Sales Tax regime.

According to him, traders cannot be arrested under the Essential Commodities Act as the law itself has been repealed in the wake of liberalisation and globalisation. But the Government has been averring that agitating traders will be arrested under the Act.

Replying to questions, Dr. Jayaprakash said that owners of hotels and medical shops had expressed their willingness to remain closed during the hartal period. But petrol pumps are likely to remain open.

The Samithy leaders Joy Muthedan, C.P. Baby and K.A. Azeez were also present.

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