Mumbai, Nov 22: The Federation of Association of Maharashtra (FAM), the apex body of over 200 trade associations, has decided unanimously to stop unloading and loading of goods in the state.

The agitation follows the central government's decision to levy a five per cent service tax on the services rendered by the goods transport operators. In a meeting of All-Maharashtra Vyapari Parishad, held on Saturday at Navi Mumbai, it has been decided to completely halt the unloading and loading of goods in the state from December 1. The parishad, attended by 5,000 traders, was organised by the federation. "We want to give sometime for the members to unload their goods which are either in transit or for which transportation orders have already been placed", said federation vice-president Mohan Gurnani. However, perishable and essential items including vegetables, milk and bread will be kept out of the purview of the strike.

According to him, the transporters have also pledged their support to FAM to make the agitation a complete success. The parishad's meeting also decided that the association will co-ordinate with other state associations to give nation-wide colour to the stir. "We have also decided to close-down our factories if the government does not withdraw the tax", Gurnani said. The parishad has also resolved that none of their members (including traders, industrialists, retailers and transporters) will register under the Excise Law as required by the centre's notification. Around 8 categories of entities registered under various Acts including Factories Act, Sales Tax, Companies Act, Societies Registration Act and Central Excise Act, have to been asked to register again for service tax purposes.

The resolution passed by the parishad on Saturday states that,"the tax, though called service tax, is a tax on carriage of goods by roads and is totally reasonable, unwarranted, regressive and obnoxious". "The service tax will hit hard the common man as it will result in exorbitant cost of compliance to the traders. Its incidence on the economy by way of inflation and cascading effect on prices will seriously affect all sectors of economy", the resolution added. The parishad also resolved that a national federation of traders be formed to oppose all obnoxious laws affecting the trade. However, as a immediate measure, it was recommended to constitute a national action committee to chalk out an action plan for getting the service tax abolished.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.