Post News Network
Bhubaneswar: Consumers in the state are in for trouble as the second round of talks the state government had with traders over VAT (Value Added Tax) exemption issue failed.
In the wake of the government’s failure to exempt 5 per cent VAT on food items, the Federation of All Orissa Traders’ Association (FAOTA) has threatened to disrupt import of essentials from April 1.
The traders had met government representatives in this connection March 26 but as the meet remained inconclusive the second round of talks was necessitated Wednesday. It was presided over by finance minister Pradip Kumar Amat and attended by food supply and consumer welfare minister Sajnay Das Burma, senior government officials and representatives of FAOTA.
Meanwhile, the state government has sought cooperation of the traders requesting them not to stop import of essential commodities.
Ministers Amat and Das Burma have asked the body to hold another round of meting after the Budget session of Assembly, but the traders are firm on their decision saying they will stop importing essential commodities from April 1.
‘‘We have been demanding exemption of VAT for the benefit of more than 4 crore people of the state and growth of all traders across the state,’’ FAOTA Secretary Sudhakar Panda said after the meeting.
While 25 of 29 states in the country are not levying VAT on pulses, wheat and other food items, the Orissa government has been imposing it. It is the consumers who are bearing the brunt, he said.
“At the March 26 meeting, the government had assured us to bring down the tax on pulses to 1 per cent from 5 per cent and discuss the tax rate on other essential commodities. But, in today’s meeting, they are not in a mood to listen to us,” he added.
The state consumes 67,000 tonne of pulses and 12,000 tonne of wheat products every month and a big chunk of the consumption is imported from other states.
The traders’ body claimed that exemption of VAT and imposition of entry tax would help the government generate more revenue.
“We appeal to the traders to withdraw their proposed stir and cooperate with the government in the larger interests of the state and consumers,” Das Burma said.
