Metal traders in Maharashtra had evaded sales tax of more than Rs 10,000 crore and were now "blackmailing" the government by threatening to shift to the neighbouring Gujarat, Maharashtra Industries Minister Subhash Desai today claimed.
"Metal traders are now threatening to leave Maharashtra and relocate to Gujarat. This is nothing but blackmailing so that the government bows down to their demand of exemption from paying more than Rs 10,000 sale tax dues," he told reporters here.
Khetwadi and Kumbharwada areas here are a hub of metal and steel business with around 5,000 persons working there.
"Our stand is that those doing business here should remain here as we simplify laws for businessmen. We will try and convince them not to leave the state. But the government will in no way bow to their demand of exemption from paying the penalty on tax arrears," said Desai, a Shiv Sena leader.
"I heard that some of these traders had a talk with Chief Minister Devendra Fadnavis and Finance Minister Sudhir Mungantiwar. I will now organise a meeting of traders with the CM when he comes back from China tour," Desai said.
Jitendra Shah, secretary of Metal and Stainless Steel Merchants Association, however, denied Desai's claims and said that the sales tax department lacked proper mechanism to implement and collect Value Added Tax (VAT).
"The (industries) department has given licenses to traders with fake addresses. We have already paid taxes but cases were still filed against us and now the sales tax department has attached our bank accounts and properties," Shah said.
"We will wait for two days. If the Maharashtra government offers us a place near Mumbai for our business and finds a solution to penalty issue, we will consider it, otherwise we are firm on shifting to Gujarat," Shah said.
