Chidambaram calls on truckers to end strike

Finance ministry agrees to talk to transport workers' unions

The government today tried to get individual truck owners and small operators to return to the roads, with Finance Minister P Chidambaram urging transporters to ply their vehicles.

Trucks have gone off the roads since Saturday to protest against a proposed service tax on freight booking agents.

"I want to make a special appeal to those truck owners who operate one or two or three trucks. No tax has been imposed on you and no tax will be imposed on you. You will not be required to register. You will not be required to collect any service tax. You will not be required to pay any service tax," Chidambaram said at a press conference this evening as the strike entered the fourth day.

The All-India Motor Transport Congress (AIMTC), however, threatened to go ahead with the blockade of essential commodities from Thursday. A final decision will be taken tomorrow.

The government has clarified the tax applies only to booking agents and not truck owners or transporters, but the industry says they are generally the same.

"A service tax on them is a service tax on truck operators," AIMTC General Secretary JM Saksena said. Representatives said the service tax would have a cascading effect on manufacturers as it would be imposed at various stages of the value chain "" from the raw material stage to finished goods.

Chidambaram said booking agents had not come to the government to protest against the move. "If large corporations or cargo booking agents have any problems, their representatives should come forward to discuss the matter with the government. Instead of discussing their problems, they are making it appear as if truck owners and truck operators have a problem with the service tax," he said.

In the afternoon, the AIMTC dared truck owners to ply on the roads defying the strike. Chidambaram, however, said states have assured him of making arrangements for the security and safety of vehicles and goods.

During the day, the Left-backed Centre of Indian Trade Unions (Citu) came out in support of the government. A finance ministry statement said it had responded favourably to the demands of Citu, to negotiate with transport workers' unions.

The ministry has also agreed to give representation to transport workers in the proposed joint committee to be set up to look into the procedural problems faced by them.

Chidambaram said truckers' unions, during their meetings with government officials last week, had agreed to the proposal for a committee to look into the procedural aspects.

"The minutes are ready. The names of the committee members are there, but they have not returned to sign the minutes," the minister said.

AIMTC's Saksena refuted Chidambaram's claims. "How can a report be submitted in two days? As India is a vast country such a report on the industry cannot be prepared in two days. After that, we did not trust the promise to form a committee ," he said.