Protest against VAT gains momentum

The efforts of Asim Dasgupta, the chairman of the empowered committee, to woo traders to accept VAT failed as the Confederation of All India Traders (CAIT) today stuck to its call for a three-day nationwide strike from March 30 against the new tax system.

At a seminar on VAT here, Dasgupta said, "the consistent demand of traders and in larger interest of consumers, all types of foodgrains will be under tax exempted category," according to a statement released by the CAIT.

He also announced that all sorts of paper products will be taxed under 4 per cent tax slab. He was further quoted as saying that each state in the country will have to follow in letters and spirit their VAT laws.

However, CAIT Secretary General Praveen Khandelewal said these concessions were nominal and the organisation has not changed its call for the strike.

a three-day countrywide strike against vat from march 30.

Replying to questions raised by traders, dasgupta clearly stated that no state in the country can form any law going beyond the white paper and directives of the empowered committee.

If any state is found flouting such directives or making any additional provisions, the same will be liable to be struck down, he said.

Dasgupta further clarified that traders will get their refund in maximum three months an,d since vat rules of most states were not ready, they, for the time being, will be allowed to collect vat tax on old format of invoices.