The Hindu Business Line : Talks fail; Kerala traders lay siege to Secretariat

ACTIVISTS of the Kerala Vyapari Vyavasayi Ekopana Samithi (KVVES), representative body of the trading community in the State, laid a day-long siege to the State Secretariat building here on Friday, the third day of their "shutters-down" strike, demanding withdrawal of the value-added tax (VAT) regime.

Activists had started pouring in from all parts of the State from early morning on a day when the VAT regime would officially ring in. They proceeded to block from outside three of the four gates that open into the Secretariat complex. However, the police managed to prevail over the KVVES activists and keep under strict vigil a lone gate open to clear a way in for the Secretariat staff.

Meanwhile, the Chief Minister, Mr Oommen Chandy, and the Finance Minister, Mr Vakkom Purushothaman, had a round of talks in the afternoon with the KVVES office-bearers led by its President Mr T. Nasiruddeen. Both parties chose to stick to their respective stance causing the parleys to end in a deadlock.

The KVVES demanded that the Chief Minister keep his word that the State Government would enforce compliance only if a majority of the States had effected the transition to VAT on the appointed date (April 1). The Chief Minister then proceeded to consult officials in New Delhi and was told that 20 States had in fact embraced the new tax regime from Friday.

This was conveyed to the KVVES representatives who refused to convince themselves with what the Government described was the ground reality. Mr Purushothaman's offer to constitute a grievances redressal committee by drawing KVVES members on it while not compromising with the decision to implement VAT was not acceptable either to them. Since 21 States, including Kerala, had chosen to effect the transition to VAT, there could be no second thoughts on implementing the same. Only eight States had declined to align with the new tax regime citing various reasons, including purely political. Even they would have to fall in line somewhere down the line, the Finance Minister contended.

The KVVES later convened for a strategy session to discuss how to carry on the protest campaign indefinitely. The members have since decided not to register themselves under the VAT regime as well as not pay tax as required by the new law. They have called a separate meeting on Sunday in which representatives of like-minded entrepreneurs in the State would be invited to arrive at a more effective roadmap for carrying out their protest.

Meanwhile, all shops and commercial establishments, including hotels, remained closed in most parts of the State on Friday.

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