Date:11/03/2005 URL: http://www.thehindu.com/2005/03/11/stories/2005031115300300.htm

Karnataka - Bangalore

Mixed response to trade bandh call

By Our Special Correspondent

Shops at the Yeshwanthpur market yard downed their shutters in Bangalore on Thursday in protest against the Government move to implement VAT. — Photo: K. Gopinathan

BANGALORE, MARCH 10. The trade bandh call given by the Association of Karnataka Trade and Industry in protest against the implementation of Value Added Tax (VAT) evoked mixed response here on Thursday.

The Agricultural Produces Marketing Committees also took part in the bandh supported by the Karnataka Hosiery and Garments Association, the Karnataka Foodgrains and Pulses Merchants Association, the Karnataka Chamber of Commerce and Industry, the Peenya Traders Association and the Petroleum Dealers Association.

The traders wanted the implementation of VAT to be put off by six months to help them understand the new method of commodity taxation and the VAT rules. They also wanted it to be implemented when other States implemented it.

All shops in the National Market and the Bajaj Complex in the Gandhinagar area remained closed. In Shivajinagar, Ulsoor and Indiranagar, many shops were closed for the day while only some shops closed down in places such as Jayanagar and Basavanagudi.

The State has decided to implement VAT from April 1 and also to continue with the existing Central Sales Tax, Special Entry Tax and Entry Tax. The traders have complained that this places an additional burden on them by pushing up prices of many consumer articles, which will not be competitive compared to the prices prevailing in neighbouring States.