Traders take to streets against VAT

MUMBAI: Major wholesale trading hubs in the metropolis wore a deserted look on Monday as traders downed shutters to participate in the nation-wide demonstrations against the value-added tax (VAT) slated to be implemented by all states from April 1, ’05.

The day-long agitation is against the implementation of VAT by states as it would cause considerable hardships to traders, Mohan Gurnani, president of Bombay Sugar Merchants’ Association, said, here.

The wholesale cloth market in the downtown Kalbadevi, wholesale market in Crawford market and APMC market in Navi Mumbai were closed as the traders suspended the operations.

Traders stayed away from the business activities throughout the city to oppose the VAT which would lead to the increase in prices of even the essential commodities, Sharad Maru, president of Grain Rice Oilseeds Merchants'' Association said.

Meanwhile, traders have threatened to go on a nation-wide indefinite strike if the VAT is not made trader-friendly and essential commodities are left out of its ambit.

“We may go on a nation-wide indefinite strike if our demands are not met,� Praveen Khandelwal, secretary general of the Confederation of All India Traders, said in New Delhi.

However, Nanik Rupani, president of the Indian Merchants’ Chamber, said that VAT was in the interest of the country and there was no need for people to oppose it when the government had agreed to keep those with turnover up to Rs 5 lakh out of the new tax regime.

Traders fear that many items would be taxed at 12.5%, as against 4-8% now.