M A I N   N E W S

VAT deadline missed yet again

New Delhi, April 1
For the third time, India has failed to meet the deadline for the implementation of the value added tax (VAT), with thousands of traders downing shutters in protest and several state governments saying that they would be unable to comply.

VAT was to come into effect across the country today, the beginning of the new financial year.

But at the eleventh hour, a committee of state Finance Ministers, chaired by West Bengal Finance Minister Asim Dasgupta, announced that a final decision on VAT implementation would be taken at a meeting on April 8.

Two earlier deadlines were missed in April, 2001 and 2002, because of states’ reluctance to accept a uniform tax structure in place of the variable and multiple taxes charged on products and services.

The federal Finance Ministry is keen to implement VAT, which is in force in about 110 countries, to have a more accountable system and allow for free movement of trade unhindered by steep taxes in some states on the one hand and unbalanced development, on the other, due to low taxes in others.

With the Centre assuring the state governments that any loss in revenue would be fully compensated in the first year of implementation, a large number of states agreed to implement the new tax structure from today.

But some like Delhi and Rajasthan decided against implementation so as not to annoy traders, who observed strikes and protests thrice in March. Both Delhi and Rajasthan will elect new Assemblies towards the end of this year.

A two-day nationwide protest shutdown by traders began yesterday. “The first day of the strike was very successful with over 5,000 trade organisations joining hands to protest the introduction of VAT,” said Praveen Khandelwal, general secretary of the Confederation of All-India Traders.

“We are continuing with the strike for the second day (Tuesday) as there is as yet no firm announcement of a deferment for at least one year,” Khandelwal said.

The apex traders’ group has asked the Finance Ministry to defer VAT by another year on the grounds that its implementation would not only create hassles for the trading community but also add to the cost of products.

“Assessment of trade under the existing sales tax (ST) and the new VAT is not feasible technically and logically. Till such time as the existing ST legislation is not repealed, VAT implementation should be deferred. In addition, most state governments are not ready with infrastructure for the implementation. We are making a request to the apex committee of the Finance Ministry to defer VAT for another year,” said Khandelwal.

The Centre has deferred a decision on the implementation till April 8 as the state governments still have to get presidential approval for their VAT legislation. Only five states — Andhra Pradesh, Gujarat, West Bengal, Maharashtra and Karnataka — have sent their bills for presidential assent so far.

Others like Kerala and Tamil Nadu have sought time to take another look at their Bills. IANS

Protests held against VAT
Bandh in region for second day
Tribune Reporters

SHIMLA: Business activities remained paralysed for the second day today as the two-day bandh called in protest against the imposition of VAT entered its second day today.

The bandh was near total throughout the state and markets in various towns wore a deserted look.

In capital here even cigarettes, pan and tea shops remained closed for the second day today. Only chemists and liquor shops were open.

The bandh was complete in Solan, Nahan, Kangra, Dharamsala, Nurpur, Palampur, Hamirpur, Mandi, Kulu, Chamba, Bilaspur and other towns, reports received here said.

CHAMBA: Almost all commercial and industrial establishments in Chamba, Dalhousie, Bakloh-Kakira, Chowari, Tissa, Salooni and Bharmour in Chamba district remained closed on the second day on Tuesday to register protest against VAT scheme.

Meanwhile, the District Beopar Mandal submitted a memorandum to the state and to the Centre through the district authorities seeking the withdrawal of VAT scheme.

BATALA: The Akhil Bharatiya Beopar Mandal, industrialists and traders of the town observed a complete bandh in response to the bandh call. Mr Kaloo Ram Abrol, general secretary, Brass-Steel Utensils Dealers Association said, the present government was unnecessarily harassing the business community by imposing VAT.

FARIDKOT: The Punjab Beopar Mandal has urged the state government to make aware the traders about all modalities about value added tax (VAT) before its implementation in the state. There were a large number of complications in the new scheme and it was not possible for the small traders to acknowledge it so soon.

Meanwhile, barring a few chemist shops, there was complete hartal in this district headquarter town to protest against the implementation of VAT.

DHURI: All shops, commercial establishments, including chemist shops, remained closed. The town markets wore a deserted look. But government offices, schools and petrol stations functioned normally. Traders and shopkeepers also took out a protest march.

NAHAN: A complete bandh was observed against VAT scheme in Sirmour district. In Nahan, Paonta, Dadahu, Sangrah, Rajgarh, Sarahan, Nainatikker, Dhaulan Kuan, Majra, Sataun and Shillai, all businessmen kept their shops and other business establishments closed.

PHILLAUR: A complete bandh was observed by different trade and industrial organisations in protest against proposed VAT system. All shops and commercial establishments remained closed. However, all government offices and banks functioned normally. Hundreds of traders and industrialists held a demonstration and burnt effigy of VAT.

PATHANKOT: On the second day of the bandh all shops and commercial establishments remained closed. Later office-bearers of the local unit of the Punjab Beopar Mandal held a rally and burnt an effigy of VAT.

PHAGWARA: Commercial and trading activities continued to be paralysed here for the second day on Tuesday as 30 business and industries organisations observed a complete bandh against the VAT regime. The bandh was complete and even tea stalls, khokhas, chemists shops, vegetables and fruit sellers and rehris were closed. The whole sale and retail markets were totally closed. The protesters were addressed by Lala Balwant Rai Gupta, president, Laghu Udyog Bharati, Punjab, its local unit president Ashok Gupta.

UNA: The shops remained closed for the second day on Tuesday in the town. More than 200 shopkeepers took out a procession in the town. According to information received here, in Chintpurni shops were opened in the morning. However, shops in Bharwain, Mubarikpur, Amb, Gagret, Daulatpur Chawk, Panjawar, Haroli, Santokhgarh, Mehatpur, Bangana, Thana Kalan and Lathiani remained closed. But at these places vegetable, dhaba and chemists shops remained open.

YAMUNANAGAR: All shopping complex remained closed in the district even vegetable, fruit, halwais and tea shops remained closed. The education institutions functioned normally.

BILASPUR: On a call from the All-India Traders Confederation, all business establishments and shops remained closed in Bilaspur town and at Ghumarwin and also in other villages of the district. Even fruit and vegetable shops, tea stalls did not function.

KARNAL: Shopkeepers in the city observed a complete bandh. Life in the city remained partially paralysed as the shopkeepers and trader did not transact any business. It is for the first time in the history of state that traders have observed a complete bandh for two consecutive days. The bandh call was given by Laxmi Chand group of the Haryana Beopar Mandal.

HISAR: The Haryana Pradesh Beopar Mandal has decided to convene a state-level meeting in Jind on April 6 to discuss the next course of action on the value-added tax (VAT) issue. Addressing a meeting of local representatives of the mandal here on Monday Mr Bajrang Das Garg said office-bearers of all district units of the mandal would participate in it. He said if the state government did not reverse its decision, the mandal would launch an agitation against the Chautala government.

HOSHIARPUR: Traders here observed a complete strike on Monday. Members of the District Retailers Federation met the Assistant Excise and Taxation Commissioner Mrs Neelam Chaudhry, and presented a memorandum to her.

GURDASPUR: The bandh call evoked a mixed response in the district headquarters town of Gurdaspur. Main bazar, Androoni Bazar and bazars in the Mandi area observed a complete bandh whereas shops on jail road, Kahnuwan and Kalanaur road and in the sub-urb of the town remained open today. No bandh was observed here on Sunday.

NURPUR: Two-day nationwide bandh in protest against the proposed implementation of Value Added Tax (VAT) passed off peacefully in the region. Shopkeepers here observed a complete strike and all business and commercial activities came to a grinding half.

Reports of complete bandh have also been received from Jassur, Damtal, Rehan, Kotla, Jawali and Nagrota Surian towns. The beopar mandals of Nurpur, Jassur and Damtal passed resolutions against any move of the state government to introduce the VAT system.

PALAMPUR: All business establishments in Palampur and its adjoining towns of Baijnath Paprola and Jaisinghpur, remained closed on Tuesday in protest against the introduction of value added tax in the state.

The Businessmen took out a procession in the town and held a rally.

SUNAM: Local traders, businessmen and industrialists observed a partial bandh on the second day here on Tuesday in protest against the implementation of VAT scheme. Shopkeepers took out a procession through the main bazars and organised rallies.

Mr Haridev Goel, a local trader, said a majority of businessmen in India were not well-educated persons so the implementation of VAT would cause very much inconvenience to them. Moreover they would also be harassed by officials of the tax departments in the name of VAT.

SANGRUR: Local shopkeepers and traders observed partial bandh by closing their shops and business establishments till about 1 pm on Tuesday in the town in protest against the proposed implementation of value added tax (VAT) on the trade and industry.

Mr Rajinder Singh Josh, general secretary of the Punjab Beopar Mandal, said shopkeepers had been asked to open their shops by leaders of beopar mandals at about 1 pm when they got an information that the Central Government had agreed to defer the implementation of VAT and review of its “objectionable” provisions.