Post News Network
Bhubaneswar, April 8: Stalemate over Tuesday’s talks between the state government officials and traders on the issue of reduction of 5 per cent value added tax (VAT) continues to overshadow the proposed traders’ boycott of imports from April 9.
The boycott called by the Orissa Byabasayi Mahasangh will lead to stoppage of import of all pulses, wheat and wheat products causing inconvenience to the consumers. Mahasangh general secretary S Panda Wednesday said the Federation had demanded in December withdrawal of 5 per cent VAT on pulses, wheat and wheat products and introduction of one per cent entry tax in its place.
Though a meeting was arranged between the Food supply and consumer welfare (FSCW) department officials and traders Tuesday, the talks ended in a deadlock. While the traders remained firm on their demand, the state government officials stuck to their stand, reliable sources said.
Another meeting which was scheduled for Wednesday between traders and the state government officials did not take place following which the Mahasangh members decided not to import these products. The issue, if not resolved immediately, is likely to affect consumers badly in the coming days. The daily requirement of pulses in the state is 2500 tonne and wheat and wheat-based commodities 3000 tonne.
The state is dependent on import of these edible products from other states. Sources said, the domestic production of pulses per annum is around 50,000 tonne against a requirement of 8lakh tonne.
The traders have been demanding abolition of 5 per cent VAT and entry tax for bringing in stability in the market. There is no VAT in at least 24 states. The draconian tax is prevalent only in Assam, Mizoram, Punjab, Andhra Pradesh and Orissa, the traders alleged.
Food supplies minister Sanjay Das Burma could not be reached for his comments.
Food supplies secretary Madhusudhan Padhi, however, said the government is looking into this matter. more p-4
