"Demand for the disposed goods has declined due to the Haryana government charging more sales tax than the neighbouring states," says Yudhvir Sethi of Sethi & Company, president of Disposal Goods Traders Association who established his business in 1947 soon after Partition. Sethi recalls that at that time there were only five to six shops in the market. "When people migrated from Pakistan to Ambala, business started growing and there was a boom in the market which attracted buyers from every nook and corner of the country."

Most of the dealers selling in the market used to make their purchases from the auctions carried out by the Army and Air Forcestations at Ambala Cantonment. Sethi says that the Army auctions have almost stopped now and departments have started inviting tenders. "Earlier, wholesalers used to frequent this market but now we have to keep heavy stocks and search for the customer ourselves as many of our buyer are moving towards suppliers in Delhi.

Turnover of of Sethi's business has decreased over the years and stands at Rs 80 lakh. Margins too have declined drastically. Sethi says that business can be increased if sales tax on school bags, mosquito nets, hosiery and readymade garments is reduced from 4 per cent to 2 per cent as it was in Punjab, so that inter-state sales tax of 10 per cent can be avoided.

The reduction of sales tax on shoes from 4 per cent to 3 per cent has helped the traders a lot and business in shoe market is improving, says Sethi.

Darshan Lal Ghai, another businessman operating in the junk market, established his business in 1954 with a meagre investment. He gradually built his business and now has an annualturnover of Rs 1.25 crore. Ghai mainly deals in cotton canvas, mosquito nets and blankets and supplies throughout the country. "For the last 10 years, due to tough competition and high taxes, profit margins have been reduced to the minimum," says Ghai. He says that to survive in the market heavy turnover is a necessity.

Ghai is annoyed with the state government policies and says that he is not happy the way things are going on. "Transportation is expensive. Previously, octroi was charged by weight but now it has been declared on value base, which will again be an extra burden on traders."

Ghai suggests that if there is uniformity of sales tax with the neighbouring states, business will receive a boost and there will be a check on tax evasions. Availability of disposed goods has also become a problem. "We have to first struggle for the procurement of metal scrap and then search for customers," says Tarlochan Singh Sahni of Sahni Metal Trading Company which deals in ferrous and non-ferrous metal scrap. "Wehave to look for buyers in other states as local sale is not enough." With the present annual turnover of Rs 2 crore, Sahni disapproves of the uncertain sales tax policies of state government and feels that this discourages new people from entering the business.

Dealers feel that it is unfair on the government's part to burden traders with extra taxes. "If the government does not take steps to alleviate our problems the future of the disposable goods market is bleak."