When the Central government was expressing faith in tax payers the State government's decision was a retrograde step, the chamber said, while suggesting certain changes in the State budget presented last week in the Assembly.

More than 75 per cent traders have got registration number under the scheme. Also, some of the traders who have registered themselves under the compulsory registration scheme have defaulted. But a number of such defaulters among both the schemes was negligible, the chamber said stating it was not proper to pay all for a fault of five cent traders. The decision was ironical because the neighbouring Maharashtra government taking a cue from Gujarat has introduced the voluntary registration scheme only recently. Traders will be forced to resort to illegal means if the state government questioned their integrity and scrapped such schemes.

The levy of four per cent tax on cloth, which is exempt from paying additional Excise duty, would prove to be the last straw on the camel's back, the memorandum said. If the tax is levied on gray, georgette, viscose and hand-processed fabrics entrepreneurs would be encouraged to shift their base to other states for there is little value addition. Moreover, the industry enjoyed more power subsidy in other states than Gujarat, it said requesting the government to exempt the industry from the new burden.

Scrapping of Form No 19 will affect the Jari industry which has been given Handicraft status by the central government. The state government after a long sustained demand had given Sales Tax exemption. Small traders could make purchases without paying any tax under Form No 19. Now they will have to pay duty at various stages.