Accusing the Punjab government of imposing anti-trade laws, traders today threatened to launch state-wide agitation, saying the state government was only "milking" trading and industrial community for mobilising revenues.
Traders under the banner of Punjab Pradesh Beopar Mandal also warned of knocking the doors of Punjab and Haryana High Court against introducing "draconian" laws like e-Trip, advance tax.
"Punjab government has been coming up with new taxation structure or systems like advance tax, e-trip, etc, all the time without realising their adverse impact on the business," Punjab Pradesh Beopar Mandal General Secretary Mohinder Aggarwal said today.
Traders questioned the launching of multilayer taxation systems in Punjab, when the Goods and Service Tax (GST) has been proposed for all the states.
In its new traders' policy, the state government has announced launch of single state taxation (for white goods, FMCG and aerated drinks), Voluntary Disclosure Scheme, besides proposing heavy penalty for any "mistake" committed.
"The state government is confusing the business community of Punjab by introducing systems like advance tax, e-trip, single stage taxation structure, lump sum tax. The intention of the state government is to mobilise money only from business community without touching farmers which its major vote bank," he said.
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"When Value Added Tax (VAT) model is already being followed, then what is the need to resort to single stage taxation which is an older version of tax law. Moreover, when GST comes in, these systems will become irrelevant. Are we moving ahead or backwards in terms of taxation system?" he asked.
Aggarwal said the announcement for an agitation will be made next month after holding meeting of traders from across the state at Amritsar.
Traders are up in arms against particularly the advance tax system and e-trip system which they claim have become stumbling block in smooth operations of their business.
"Punjab government has replaced entry tax with advance tax system which is set to hit the business hard as industry will be forced to shell out heavy amount of money in advance even before making sales of certain commodities," he said.
The state government has brought several commodities, including cement, cotton yarn, pluses under the advance tax net.
Traders have also been opposing e-trip system which is aimed at curbing large scale tax evasion in few sectors. "We will certainly approach the Punjab and Haryana High Court against tax systems like e-trip, advance tax," he said.