The Hindu : Kerala News : Traders' chief launches hunger stir

Online edition of India's National Newspaper
Friday, Apr 08, 2005

Kerala

Kerala

Traders' chief launches hunger stir

By Our Special Correspondent

THIRUVANANTHAPURAM, APRIL 7. The traders' stand-off with the Government over implementation of Value-added Tax (VAT) entered a new phase with the Kerala Vyapari Vyavasayi Ekopana Samithy leader, T. Nasirudeen, launching an indefinite hunger stir in front of the Secretariat today.

The suspended Congress leader, K. Muraleedharan, the Kerala Congress (B) leader, R. Balakrishna Pillai, the Kerala Congress (Jacob) leader, Johnny Nellore, and the Youth League leader, K.T. Jaleel, came to offer support to the stir.

The Tamil Nadu Vanibha Sangham president inaugurated the hunger stir.

The speeches made were directed against the Finance Minister, Vakkom Purushothaman's withdrew its move to implement VAT.

The pro-left Vyapari Vyavasayi Samithi is also on the warpath. They have been on hunger stir from Wednesday.

Mr. Nasirudeen said that VAT was not suitable for Kerala that depended on other States for supply of goods. The Samithy was not against VAT as such, but wanted the Government to take adequate measures to convince the traders and the people about its pros and cons.

The Samithy feared that VAT would affect small traders because of the steep rise in prices of commodities. A majority of the commodities (1,589 out of the 1,728 listed under VAT laws) come under the 12.5 per cent slab. When the product reached the consumer, there would be a 50 per cent increase in price owing to the levy at different stages of sale, it said.

The Samithy objected to the punitive powers given to officials, It would lead to red tape. The sops regarding turnover limit and presumptive tax did not have clarity, the Samithy said in a press note.

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