Traders strike on Feb 21 to be total

The Joint Committee of West Bengal Trade Bodies (JCWBTB) will participate in the national trade strike on February 21 in association with Bharatiya Udyog Vyapar Mandal (UVM), New Delhi, to protest against the decision to implement value added tax (VAT) across several states in the country.

More than 50 lakh retail outlets will be closed, said T N Trivedi, convenor, JCWBTB.

"Not even a 'paan' shop will remain open," said Trivedi.

This might cause revenue loss of more than Rs 500 crore.

If there is no positive response from the central government in this regard then JCWBTB along with UVM will go for a 72 hours strike from March 30 to April 1, when VAT will be rolled out.

The proposed VAT will harm small retailers and shopkeepers, said Trivedi.

"Several shopkeepers in the state are inadequately qualified to maintain and understand the complexities of the proposed VAT structure," added Trivedi.

JCWBTB is not opposing VAT imposition on industry.

"We have no objection against MANVAT, that is VAT on manufacturing units. But if imposed on retailers and traders this would harm the economy," said Trivedi.

Trivedi opposed plans to phase out other taxes like central sales tax (CST).

The proposed structure where VAT along with all other taxes like entry tax, professional tax, service tax, octroi duty and other existing taxes will be extremely harmful, noted Trivedi.

"The government should have done away with the other taxes before imposing VAT in the country," added Trivedi.

Trivedi said the VAT to be rolled out in April will lead to multi-point taxation, price escalation and increase in corruption.

"As the practice goes, small and less educated shopkeepers will be exploited massively by the inspectors regarding the maintenance of accounts and paper," added Trivedi.