Post News Network
Bhubaneswar, Dec 8: Traders across the state have decided to go on strike for an indefinite period beginning Tuesday seeking exemption of five per cent Value Added Tax (VAT) imposed by the state government on import and procurement of cereals and pulses.
Traders in the state have demanded that the government accept their proposal to levy one per cent entry tax on these commodities.
The Orissa Byabasayi Mahasangha, a merchant association, has threatened to boycott import of essential food items from other states if the state government does not concede to their demand.
“Despite repeated attempts, the state government has ignored our demand and we’re now forced to stop importing cereals and pulses from other states,” said a member of the Mahasangha. “We have decided to do so from December 9,” he added.
Sources said traders of Cuttack Malgodown have also decided not to import and trade cereals and pulses from Tuesday for the next few days.
Orissa depends on other states for cereals and pulses and if the strike continues for a long period, it may severely affect retail markets as the current stock of these commodities may last only for four to five days.
Sources said while the state’s requirement of cereals is about 12 million tonne per annum, the state produces 3.46 lakh tonne. Likewise, while the requirement of pulses in state is around 9 lakh tonne per annum, the state produces 80,000 tonne.
“The finance department has the authority to tax or waive. This decision is a time-consuming process and cannot be done in one or two days. We will talk to concerned departments to find out a solution,” said Food Supply and Consumer Welfare secretary Madhusudan Padhi.
Meanwhile, the Finance department is yet to take a decision on the issue.
