Post News Network
Bhubaneswar, April 9: The state government Thursday sought more time to consider the proposal to exempt wheat, wheat-based products and pulses from the 5 per cent value-added tax (VAT) even as traders resorted to a boycott of imports of wheat, wheat-based products and pulses to highlight the demand for exemption of VAT.
“In view of the state’s present financial condition we require more time to reach a conclusive decision,” food supplies and consumer welfare minister Sanjay Das Burma told the members of the Federation of All Orissa Traders’ Associations (FAOTA).
“We appeal to the traders to come for discussion and resolve the matter amicably,” Das Burma said. “We want the traders to understand the revenue status of the state,” he said.
The state government wants to continue the 5 per cent VAT on pulses, wheat and wheat products till the introduction of the goods and service tax (GST). However, the traders’ body has demanded its immediate exemption.
A meeting between the traders and the food supplies and consumer welfare department two days ago ended in a deadlock. The traders remained firm that VAT should be withdrawn immediately on wheat, wheat products and pulses. However, the state government stuck to its stand that it should be continued till the introduction of GST.
Meanwhile, the traders’ body, which had already stopped generating waybills, a prerequisite for import of goods from outside the state, has now stopped importing these edibles for an indefinite period. “We have stopped procuring pulses, wheat and wheat products from other states from Thursday,” FAOTA secretary Sudhakar Panda said.
The issue, if not resolved immediately, is likely to affect consumers severely in the coming days. The daily requirement of pulses in the state is 2,500 tonne and wheat and wheat-based commodities 3,000 tonne. The state is dependent on import of 90 per cent of these edible products from other states.
The food supplies minister said there was enough stock in the market but Panda said the stocks would meet the requirement of only a week.
The state government is keeping a strict vigil to crack down on hoarders to avoid any market crisis. “Collectors have been asked to keep a close watch on the situation and also to conduct raids on hoarders,” said FSCW secretary Madhusudan Padhi.
