Bandh against VAT splits traders

The nationwide strike against the proposed implementation of VAT has evoked a mixed response in Gujarat, with some traders' organisations supporting the bandh, while others staying away.

Gujarat Vyapaari Hithrakshak Samiti has supported the bandh to protest against the proposed implementation of VAT.

Earlier, traders from across the state assembled in Ahmedabad on Friday, and it was decided to oppose implementation of VAT, as the consumers will have to bear extra costs.

The salt industry of Gandhidham has already stated that it will join the nationwide stir against VAT and will disrupt the proposed Dandi march being organised from Ahmedabad to Dandi in South Gujarat.

The Dandi yatra will be organised to mark the anniversary of the historic march by Mahatma Gandhi and his followers to protest against a tax on salt.

"The actual price of a kg of salt does not add up to more than 15-20 paise, but salt pan owners have to pay tax for iodisation inputs, packaging material, fuel and the like, which makes salt much more costlier. In addition to all these taxes, if there is VAT on the finished product, the industry will not be able to sustain the tax burden," said Bachubhai Ahir, president of the Gandhidham Salt Manufacturers Association (GSMA).

Earlier Hitesh Patel, president, Anand Anaaj Vyapaari Mahajan, said that grain traders of the district will join in the nationwide protest against VAT implementation.

According to Patel, it will not be feasible to maintain regular book keeping, especially when the act is new. The association is also against proposed penalty for errors in maintaining accounts.

The Federation of Surat Textile Traders Association spokesman Devkishan Manghani said earlier that the textile traders would not be participating in the bandh, and no decision has been taken to support the bandh call either.

The textile markets would function as usual on Monday, he added.

Dinesh Mandalaywala, president, Southern Gujarat Chamber of Commerce & Industry, said, "The chamber is not connected in any manner to participating in the bandh call or supporting it. The chamber is not in favour of the bandh."

Surat City Edible Oil Traders Association has, however, declared support for the bandh.

"The edible oil traders all over the country and state, have announced support for the bandh call. All oil traders in Surat have also decided to willingly participate in the bandh," the association president Rupesh Vora, said.