The Hindu Business Line : Traders group to protest against VAT in May

WHOLESALE traders in Maharashtra have threatened to boycott products of manufacturers who are supporting VAT, Federation of Associations of Maharashtra said on Thursday.

The federation has decided to begin their agitation against implementation of VAT to be levied from June 1 on various commodities (including essential commodities) in the State. The agitation will begin from Aurangabad on May 2.

During May there will be a series of bandhs in the 28 districts of the State whereby each district will observe one-day bandh and stage dharnas. Traders will also boycott all the products of leading companies which are supporting the VAT. The federation will adopt "If VAT, no vote" policy, for all the political parties in the State. It will also send letters to all the parties to clarify their stand on implementation of VAT in the State.

"Traders all over the State are opposing the present form of VAT as a system and also as an act," Mr Mohan Gurnani, President, the Federation of Association of Maharashtra (FAM), told Business Line.

"Federation is of the view that if at all we want to bring VAT in our country then it should be a single comprehensive tax merging all other taxes and levies like excise duty, octroi duty, turnover tax, professional tax," Mr Gurnani said. The new system will increase the prices of goods and services by minimum 8 to 10 per cent, whereas the act will wreck havoc on the trading community and transporters.

Under the new system, traders will be subject to number of checks and audits. Even traders may face prosecution and imprisonment for an offence committed inadvertently, said Mr Surendra Savai, Convenor of FAM. The federation has sent letters to the Union and State Finance Ministers to immediately redress the grievances of the trading community on the issue of VAT.

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