Stand-off between Kerala govt, traders continues

There seems to be no end to the stand-off between the Kerala government and the agitating traders over the implementation of Value Added Tax (VAT).

While the government is adamant on implementing VAT from April 1, 2005, the traders have already stopped giving fresh orders from March 15. If the tug of war continues, the state is likely to face an acute shortage of essential commodities within a week's time.

The 10,000-strong traders have decided to participate in the three-day all-India strike, called in by the Confederation of All India Traders Association, beginning on March 30. The retail dealers have decided not to purchase goods from April 1.

The leaders of Kerala Vyapari Vyvasyi Ekopana Samithi (KVVES), state traders' co-ordination councils, said that they would continue the agitation till all the anti-trade clauses of the new KGST Act are withdrawn.

But an adamant government said that the VAT will come into force on April 1 and the state finance minister, Vakkam Purushothman, said that all issues would be discussed after the implementation. But the government has not yet decided when it will meet the warring traders.

KVVES maintains that implementing VAT this year would be meaningless with five states, including the neighbouring Tamil Nadu, deciding not to.