The Hindu Business Line : 72-hr trade bandh called in Bengal from tomorrow

THE Federation of West Bengal Trade Associations (FWBTA), which enjoys membership of as many as 25,000 trade associations in West Bengal, has called for a 72-hour trade bandh from March 30 morning in protest against the introduction of VAT from April 1 in the State.

This is in line with the 72-hour anti-VAT all India trade bandh called by national bodies such as the Confederation of All India Trade Associations, the Federation of All India Trade Associations and the Bharat Vyapari Udyog Mandali.

Medicine shops will be outside the purview of the bandh.

Briefing newspersons here on Monday, Mr A.R. Kajaria, President, FWBTA, said after observing the trade bandh till April 1, the FBWTA may even examine legal option, if the State Government goes ahead with VAT implementation without giving trade bodies a proper hearing on some of the anti-trade VAT clauses. He said, "Under any case, we will refuse VAT registration and will chalk out a further action plan against the trade-unfriendly VAT regime."

It is felt that even for traders falling within the Rs 5 lakh to Rs 50 lakh annual turnover bracket, thus availing the composition scheme at the VAT rate of 0.25 per cent, there were too many conditions that nullify the apparent benefits.

Mr Kajaria put the estimated loss due to the three-day all-India trade bandh at a staggering Rs 2,500 crore.

According to Mr Mahesh Singhania, senior member and Chairman, Publicity and PR, FWBTA, West Bengal being a major consuming State, end consumers here would suffer owing to sharp price increases, if VAT is implemented.

He said the State's revenue inflow too would be adversely affected, as some of the leading producer States such as Uttar Pradesh and Gujarat have decided not to opt for VAT.

Pointing out that prices of essential as well as other commodities will increase by 25-40 per cent due to VAT, Mr Singhania said the new system will create difficulties by forcing traders to compulsorily issue cash memos (even for sale of the smallest value), maintain account books and commodity-wise stock register and submit periodical returns.

Some of the States not implementing VAT are UP, Gujarat, Tamil Nadu, MP, Rajasthan, Chhatisgarh, Jharkhand and Punjab.

Mr Singhnia said the one-year VAT experiment may not succeed and States will be forced to go back to the time-tested first point sales tax system.

After working for more than seven years to perfect a system such as VAT, it is strange that the Government is willing to put it through a one-year experiment, he said.

VAT, Mr Singhania said, would lead to flourishing of illegal trade and the worst hit would be the small units.

He appealed to the political parties not to seek political mileage out of the misery of the traders, as a total trade bandh also means huge suffering for many.

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