Tobacco traders have threatened to strike from Monday over tax

The tussle between tobacco trade and the Statutory Tobacco Board on one hand and the Central Excise Department and the AP Agriculture Market Committee on the other hand over taxes has assumed new dimensions.

GUNTUR: The tussle between tobacco trade and the Statutory Tobacco Board on one hand and the Central Excise Department and the AP Agriculture Market Committee on the other hand over taxes has assumed new dimensions.

As the market committee's letters to the tobacco trade for market cess on their purchase of tobacco at the Tobacco Board sponsored function platforms have fallen on deaf ears, will go on strike from Monday, the Indian Tobacco Association sources said.

The Indian Tobacco Association contends that the Agriculture Market yards are not utilised by the Tobacco trade and that Tobacco board collects cess from the traders for dealings in the tobacco platforms, and the double taxation is unconstitutional.

The Central Excise department has demended service charge from Tobacco Board on the ground that the Board is not a part of the Central Government. The Board has contested the argument.
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