Can't pay VAT: Agra footwear traders to begin strike again

Going a step further in their protest against the implementation of value-added tax (VAT) on handmade shoes, Agra footwear traders have decided to stop buying new stocks of shoes from the local manufacturers from tomorrow.

The traders will, however, continue to sell their existing stock till it is cleared. Thereafter, they also plan to shut down the shoe market of the town till the state government accepted their demands.

The extreme move, which will affect more than 20,000 cottage-level footwear manufacturers of Agra, has been called jointly by the Agra Shoe Factories' Federation (ASFF) and other footwear traders' organisations in protest against the state government's apparent 'disregard' of the welfare of footwear trade in Agra.

According to Rajkumar Sama, the ASFF chairman and head, VAT-evaluation committee of Agra Vyapar Mandal, the footwear traders of the town had gone on a 16-day strike in November against the tax. The strike had been called off only after the state government had assured the footwear traders that it will consider the matter while revising the VAT slabs. But the government took no action in cutting back on the tax rates applicable on handmade shoes, he said.

As VAT was applicable in the state from January 1, he said the footwear traders had decided to stop buying footwear from manufacturers while selling out their existing stocks before shutting down their establishments till the government decided to take a sympathetic view towards them and brought handmade shoes in the 'goods of local importance' category, under Schedule-I of the VAT act, exempting them completely from the tax.

He said the state government was busy training its tax officials on tax collection methods, but no efforts were being made towards training the ordinary trader who was unaware of the new provisions. No help was being offered to the traders for computerising their businesses, he added.

Talking on the issue of VAT levied on transporters, he said the transporters were not traders; they were service providers paying service tax to the central government for conducting their businesses. But even the transporters had been brought into the VAT regime, which was completely illogical.

Sama said the transporters of Agra had already stopped booking new transport orders. They will also stop deliveries from Tuesday, going on an indefinite strike, which would seriously impair the footwear, handicraft and glass business in Agra and Firozabad. However, the strike will continue till VAT was lifted, he maintained.