Under pressure of the traders, the State Government on Monday decided to lessen the VAT on pulses from five per cent to one per cent on an experimental basis for three months.
“The Government will lessen the VAT percentage from five to one on pulses and other essential commodities. After Cabinet approval, the decision will come into force,” said Finance Minister Pradip Amat at a meeting with traders.
Food Supplies and Consumer Welfare Minister Sanjay Dasburma, department Secretary Pradipta Kumar Mohapatra and Federation of All Odisha Traders’ Association (FAOTA) secretary Sudhakar Panda participated in the meeting.
“The Government has decided to exempt VAT on an experimental basis. Further decisions would be taken later,” said Panda, adding that their proposed stir fromJune 1 would be put on hold.
On May 27, Panda had warned that 194 associations of the federation would go on an indefinite strike by stopping import of pulses, wheat and other essential commodities if their demands are not met by June 1.
The FAOTA, which was earlier on strike demanding exemption of VAT on pulses, wheat and wheat products, had postponed the agitation till May 27 after the assurance of the Government to consider the demands after completion of Assembly Budget Session.
