Mumbai wholesale markets on strike

The 14 wholesale agriculture produce markets (APM) dealing in grains, oilseeds and other essential commodities like sugar, and coconuts have decided to stop both loading and unloading operations from Wednesday night to protest the service tax imposed by the Union Government, Sharadkumar Maru, president Grain, Rice and Oilseeds Merchants' Association (GROMA) and other wholesale markets associations, said today.

Existing stocks of commodities were low as arrivals have been stopped from January 1, 2005, and goods may run short, Maru added.

He alleged that appeals to the Prime Minister and the finance minister as well as trade bodies had been ignored.

The Union government brought transport of goods by road under the service tax net but deferred its imposition following protests.

The central government by a notification on December 3, 2004, shifted the 10 per cent service tax and 2 per cent education cess on goods transport from January 1, 2005, from transport operators to customers and traders.

Trader who were now responsible for payment of service tax after obtaining registration from the excise department, within following 25 days from the end of each month.

Fruits, vegetables, eggs and milk were exempted but essential commodities like grains, pulses and oilseeds were under the tax, he alleged.

Traders had refused to obtain registration from the excise department and comply with assessment procedure, alleging that this would lead to harassment and corruption.

Traders said the government had not imposed taxes on agriculturists or on agri-produce but had decided for the first time to tax agricultural produce items in the hands of traders through the service tax.

They alleged this was unjust and therefore their protest and the stoppage of unloading of goods was justified.