Kanara chamber protests tax service tax

A protest march was taken out from the office of Kanara Chamber of Commerce and Industry (KCCI) to the commissioner of central excise. The members of the KCCI submitted a memorandum to the commissioner to protest the reintroduction of service tax from January 1, 2005.

The KCCI said "the agitation will be in the nature of total non-compliance of the amended rules". The KCCI threatened to continue the agitation till the amendment was withdrawn.

Meanwhile, A Srinivas Rao, president of the chamber, in a letter to P Chidambaram, Union minister for finance, urged him to intervene to withdraw the same in the interest of the public.

He has pointed out that the experimental attempt to introduce the tax in 1997 by the then government evoked widespread resentment, mass agitation and prolonged strikes which warranted the withdrawal of the same.

The trade, industry and transport sector are collectively now determined to fight for its survival by opposing the tax. Service tax on goods transport will be the harshest measure causing irreparable damage to the economy and consequently detrimental to the common man, the release added.