Karnataka - Mysore   

Trade bandh near total in Mysore

By Our Staff Correspondent

Traders and businessmen staging a demonstration against the introduction of VAT, in Mysore on Thursday. — Photo: M.A. Sriram

MYSORE, MARCH 31. Business and commercial establishments here remained closed today in response to the trade bandh called by the Mysore Chamber of Commerce and Industry (MCCI) against the implementation of value added tax (VAT) from Friday.

The chamber and trade bodies want the State Government to introduce VAT only after modifying certain provisions in it. The trade bandh here coincides with the countrywide bandh called by trade bodies.

The response to the call was near total on D. Devaraj Urs Road, Sayyaji Rao Road, Dhanwantri Road, Santhepet, Shivarampet, Ashoka Road, Irwin Road, and Chamaraja Double Road where traders downed shutters. Shops in some extensions of the city also remained closed. The closure of business and commercial establishments, including provisional stories, hit the consumers. However, hotels, pharmacies, cinemas and banks functioned as usual. Traders at the Agricultural Produce Marketing Committee (APMC) yard at Bandipalya on the outskirts of the city too responded to the bandh call by keeping their shops closed. The bandh at the APMC yard affected several farmers who came from different places to sell their produce.

Hundreds of traders formed a human chain at K.R. Circle before taking out a procession to the Deputy Commissioner's office where a memorandum was submitted to the Government. After the procession, a few shops on Devaraj Urs Road remained open. However, activists supporting the bandh forced them to down shutters.

In the memorandum, the traders objected to the introduction of VAT in the State even before a consensus could emerge on its implementation. They urged the Government to withdraw VAT in its present form and bring in suitable modifications to certain disputed provisions of the new taxation system. They urged the Government to raise the turnover ceiling for VAT from Rs. 10 lakhs to Rs. 25 lakhs and suspend harsh measures such as levy of hefty penalty for violation during the first two years. They opposed collection of certain Central and State taxes along with VAT.

The chamber said several States have expressed their reluctance to implement VAT for want of consensus on it. "Even our neighbouring States are not forthcoming on the timing for implementation of VAT," the chamber Secretary, A.S. Satish, said. "These developments confirm the concerns and apprehensions expressed by trade bodies across the country through their bandh called on March 10," he added. Traders said there is confusion on the list of commodities exempt from VAT. The Government has not publicised the list as a few traders have any knowledge about the rate of taxation for different commodities and services. The penal provision under VAT for defaulters also came under severe attack from traders. "When a new taxation system comes into force, discrepancies and errors bound to take place in the maintenance of accounts due to various factors, including lack of knowledge about the provisions of law". Hence, the Government should suspend the penal provisions till the new system is assimilated.

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