Traders threaten bandh against octroi hike

Traders in Jamnagar have threatened to observe a bandh on February 20 if the municipal corporation did not repeal the hike in octroi on essential commodities, effected in its Budget.

Taking strong exception to the proposal to hike octroi, the Jamnagar Vyapari Mahamandal, the largest traders' organisation in this industrial town, has demanded immediate withdrawal of the provision.

The Mahamandal has also taken up the case with the state urban development minister I K Jadeja and sought his intervention in the issue.

Traders said the authorities have not responded favourably to their demand so far.

The municipal corporation, in its Budget for 2004-05, has proposed the hike in octroi on gas cylinders, cigarettes, bidis, toothpastes, washing machines, flavoured tobacco, dry cells, perfumes, refrigerators, televisions and mineral water, among other items.

The new rates will be applicable from February 13.

Mahamandal sources said the municipal corporation has increased the octroi on 13 items from last year and petrol and diesel were included in it.

"The Mahamandal had opposed the hike, but the corporation has not responded so far. Even the civic body had not been able to give logical reasons for not accepting our proposals," said a member of the association.

The sources said the traders were expecting the state government to totally abolish octroi, but the corporation has increased the levy.

The octroi exemption given to the telecommunication service sector is a discrimination, some felt.

The Budget provisions on octroi hike have not been published in the government gazette. So the recovery from February at the new rates would be illegal, the sources said.