VAT protest: Traders down shutters on pulses, wheat

Post News Network

Cuttack, Dec 9: The busy Malgodown here wore a deserted look as around 2,200 wholesalers owing allegiance to the All Orissa Traders’ Association (AOTA) stopped import of pulses, wheat and wheat products from other states starting Tuesday for an indefinite period protesting against five per cent value added tax (VAT) imposed on these items by the state government.
The traders’ body has long been demanding introduction of a unitary tax system on food products in the state instead of the 5 per cent VAT levied on these items which are exempted in 23 other states in the country. Traders had been complaining against this which has led to rampant black marketing leading to high prices as well as low revenue collection. The association has decided not to import suji, atta, wheat and pulses from other states. The AOTA had given its ultimatum to the state government November 23 with regard to its self-imposed indefinite ban on import of these products.
“We have on several occasions made representations to the government urging it to do away with the tax on pulses and foodgrains, essential for survival. We have made our representations to the finance minister, chief secretary, additional chief secretary and commissioner of commercial taxes on several occasions. No other state has imposed tax on pulses and foodgrains. Our demand has fallen on deaf ears. Due to the government’s apathy we have decided to take the drastic step,” said Sudhakar Panda, general secretary of the association.
The situation has led to spiraling of prices of these items and the traders are being blamed unnecessarily for it, he added. The state consumes about 67,000 metric tonne (MT) of pulses and 12,000 MT of wheat products every month. A chunk of the consumption is imported from other states. However, the existing flour mills in the state are catering to only 26 per cent of the wheat and wheat products demand, he alleged.
The ban on import of these items by the traders is likely to lead to an artificial shortage of these items. “We have proposed the government to impose 1 per cent entry fee at check gates and exempt us from paying VAT. This will lead to more revenue for the government,” said Srikant Sahu, secretary of Cuttack chamber of commerce here.
Meanwhile, food supplies and consumer welfare minister Sanjay Das Burma said he will hold a meeting of the concerned officials Wednesday evening after which he would take a decision.