New Delhi, July 2
Facing the wrath of the people reeling under the effects of inflation, the government does not seem to be in a mood for a showdown with the truckers around the country and has assured them that their demands will be looked into and they will be provided relief in some of the taxes being charged.
Aware of the truckers strike all over the country, in which more than 50 lakh trucks stayed off the road and there was no movement of goods and commodities, the government said some service tax relief may be given to the transporters by easing procedural matters and possibly by raising the abatement rate. The Central Board of Excise and Customs (CBEC) member V. Sridhar assured that the demands of the truckers would be looked into, and said, the relief could come by way of an increase in the abatement rate to offset increased cost to transporters.
“The government is considering this. We are hopeful of finding a solution. May be, if we decide on this, they (transporters) may get more abatement,” he said.
Lack of movement of goods and commodities could lead to a possible shortage of essential items. Besides other issues, the transporters have been particularly upset with notices issued to them by service tax field formations in Delhi and Kolkata asking them to pay service tax at the rate of 12.36 per cent on packing, warehousing and labour services used in cargo handling, considering them as independent services.
The department has been demanding the service tax from the past dates, which as a result runs into hefty amounts. When the abatement scheme was launched in 2004, many services were not taxed but have now become taxable and may have increased the cost of inputs for transporters.
Besides the service tax, the transporters are protesting against toll tax, diesel price and speed governors and mechanical tax.
While the trucks stayed off the road, the officials said they held a meeting with the representatives of the AIMTC and an assurance had been given to examine the issues.
