The Hindu : New Delhi News : Traders' strike on Feb. 21

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Saturday, Feb 19, 2005

New Delhi

New Delhi

Traders' strike on Feb. 21

By Our Staff Reporter

NEW DELHI, FEB. 18. Trading establishments and traders of Delhi will observe a total strike on February 21 to protest against the proposed Value Added Tax, the convener of Coordination Committee of Apex Trade Organisations, M.M. Aggarwal, said here today.

The trade leader said all important markets such as Chandni Chowk, Sadar Bazar, Azad Market, Khari Baoli, Lajpat Nagar, Kashmere Gate, Mori Gate, Shradhanand Market, Naya Basar, Kamla Market, Shahdara, Gandhi Nagar, Naraina, Karol Bagh, Kamla Nagar and Paharganj would remain closed on that day when a nationwide bandh has been called to protest against the proposed tax law.

On that day, Mr Aggarwal said the traders will hold rallies at various places. Also, an effigy of VAT will be burnt at Ghantaghar or Chandni Chowk in the afternoon at around 1 p.m.

The president of the Delhi Vyapar Mahasangh, Manohar Lal Kumar, said the Delhi Government has been trying to mislead the traders doing business of up to Rs 50 lakhs per annum by issuing statements through the media whereas the fact was that even traders having a turnover of up to Rs 10 lakhs per annum will have to pay Rs 10,000 and the amounts would go up proportionately. This, he said, would mean that the traders will have to pay these sums out of their own pocket and would thus stand to lose around 20 per cent of their income in paying the new tax.

The president of Forum of Delhi Trade Associations, Vijay Gupta, said that in the event of VAT being implemented in Delhi, the Union Territory of Delhi will completely lose its distributive character, which it enjoyed till now.

At present the inter-state business was being transacted through the S.T. Form but once the proposed VAT comes into operation, the traders will have to pay the local sales tax first which will be refunded only after the amount of refund is guaranteed to the Sales Tax Department.

Fearing that the refund system will be marred by deep-rooted corruption, he said when the capital of traders will be blocked with various government departments, they will not be left with adequate surplus to carry on with their trade.

The president of Delhi Unit of Confederation of All India Traders, Suresh Bindal, said while right not there is no sales tax on flour, pulse, rice, sugar and foodgrains in Delhi, with the imposition of VAT, these items will also come under the tax regime and the household bills will go up by four per cent. With the new tax being levied at every stage of sale and labour cost and transport charges adding up each time, he said, the actual increase in prices would be much more at around 20 per cent.

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