Gujarat truckers to join protest

The All India Transport Association has called for a strike from August 21 to oppose the imposition of service tax on the transport business. All transporters in the state have decide to participate in the strike.

"The negotiations are going on at national level. We are waiting for the conclusion. We will go on strike from August 21 on indefinite basis if the government does not change their stand," said Madan Jain, president of the Vadodara-based V V Nagar and Anand Tranport Association.

Mavjibhai Dodiya, president, Gujarat Truck Transport Association, said: "There will be a strong protest seeking the withdrawal of the service tax on the transport business. All transporters are urged to participate."

There are over 1,00,000 small and big transport vehicles in Gujarat including about 15,000 registered in Vadodara only. There are about 7000 trucks in the entire Rajkot district.

The surge in fuel prices and the general recession in the market has already badly hurt the transporters. The imposition of the 10 per cent service tax by the finance minister has dealt a big blow, Dodiya added.

"We are against the 10 per cent service tax plus newly introduced cess. Industry is already facing lot of troubles due to hike in fuel prices. We don't have good margins due to competition. Proposal for service tax will make situation worse for the industry," said an office bearer at Baroda Road Transport Association.

Truckers are not only worried about the hike in their costing but they are also worried about the paper work the service tax will generate.

"We don't have large offices and man power to work. Maintaining record of tax papers will be a great trouble for us. It is better government pass on this tax to the clients as anyways we are going to charge extra due to rise in tax from the clients only," said Jain.

Meanwhile, the Central Excise Department has already started registering truck operators to furnish the value of services rendered during fiscal year 2003-04 to start the charging service tax on transport of goods by road.

The Finance Minister has earlier said that there is no intention to levy service tax on truck owners or truck operators and on saving part of the premium collected by insurer.

Meanwhile, heavy rains in south Gujarat and Maharashtra has badly hurt transporters. Several consignments to and from Mumbai are stuck on the flooded highways.

"About 1500 goods trucks and 30 to 40 passengers vehicles headed towards south Gujarat are stuck due to heavy rains. This has caused a loss of close to Rs 60 lakh," said Bharatsinh Rana, joint secretary, All Gujarat Transport Association.

"Various trucks carrying machine tools, oil engines and automobile spares dispatched from Rajkot are trapped midway. This has resulted in a short supply of raw materials for industries in the Rajkot region. Several truck loads of cement, spices and pulses have been spoilt, resulting in heavy losses," Rana added.

The floods has resulted in the local offices of several transporters closing new bookings.