Post News Network
Bhubaneswar, April 13: The Federation of All Orissa Traders Association (FAOTA) Monday called off its strike after the state government declared to form a panel to go overtheir demand for exemption of five per cent Value Added Tax on imports of pulses, wheat and wheat products.
Concerned over the stir, the government held a third round of meeting with FAOTA which had boycotted import of commodities since April 9 demanding introduction of one per cent entry tax in lieu five per cent VAT on these edibles.
The meeting called jointly by finance minister Pradeep Amat and food supply and consumer welfare minister Sanjay Dasburma was attended by the secretaries of both the departments and members of FAOTA.
The meeting decided that a seven-member committee comprising four officials from the departments of finance, food supply, MSME and labour and three representatives of the traders’ body will look into the VAT issue. Following this the traders’ body decided to call off their strike.
The committee will submit its repot to the state government within three months from the date of its formation following which a final decision will be taken by the state government.
Earlier, the finance minister had made it clear that the proposal for levy of one per cent entry tax instead of five percent VAT was not possible at this juncture since the matter is pending in the Supreme Court.
Two earlier meetings between traders and the state government had remained inconclusive with the government sticking to its stand to not exempt VAT from these edibles until the Goods and Service Tax (GST) is implemented in the state.
The government had also announced to form a state level purchase committee to procure 10,000 MT of pulses for next two months in view of the ongoing stir by the traders.
FAOTA, however, had decided to go ahead with the strike till the government yielded to its demands. The government again called the traders’ body for a meeting to sort out the issue as the state is dependent on import of these edibles from outside to meet the daily requirement.
Sources said the daily requirement of pulses in the state is 2500 tonne while that of wheat and wheat-based commodities is 3000 tonne. The state is dependent on import for 90 per cent of these edible products.
