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Govt panel to look into VAT, traders call off strike

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Express news service

Posted: Jan 01, 2008 at 0000 hrs IST

Lucknow, December 31 The state transporters called off their indefinite strike, proposed from January 1, following the state government’s assurance of constituting a committee to study their grievances against the imposition of Value Added Tax (VAT). VAT was introduced in the state for the first time today.

Uttar Pradesh Motor Transport Association (UPMTA) had called for the against the provisions of the UP Value Added Tax Ordinance, 2007.

The proposed committee will comprise representatives of UPMTA and two members, nominated by the Trade Tax Commission. The committee is expected to file its report within the next two months.

In the VAT ordinance, the transporters have been defined as dealers. Moreover, like traders, they were required to provide records about the goods transported by their firm and also seek registration under VAT.

Transporters argued that except Tripura, West Bengal and Assam, in no other state, transporters have been clubbed with dealers.

“We are merely coolies, as we transport the goods of any party who is willing to pay the tariff according to the prevailing market rate. So, how can we be held responsible if the consigner is involved in tax evasion?” asked Subash Chaabra, vice-president of UPMTA.

Meanwhile, the Uttar Pradesh Udyog Vyapar Mandal has given the call for a statewide bandh on January 1, against the implementation of VAT.

The traders will stage dharna at all district headquarters.

In Lucknow, they will take out a procession from Aminabad, which will terminate in front of the Vidhan Sabha.

Principal Secretary (Home) J N Chamber said, “The state government has taken adequate security measures to maintain law and order. Law will take its own course if anyone tried to forcibly close shops and other commercial establishments.”

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