Prices of essential commodities are likely to rise further with traders threatening to go on an indefinite strike from April 1 protesting the State Government’s failure to exempt the five-per cent value added tax (VAT) on essential commodities.
The traders’ association has decided to stop import of pulses, wheat and wheat products from neighbouring States from April 1.
“Despite our repeated appeals and even agitations nothing tangible has happened as yet. Nine months have been elapsed since we were assured by the State Government that it will take a call on the VAT exemption,” said Odisha Byabasayi Mahasangha general secretary Sudhakar Panda.
Maintaining that only Odisha is imposing such tax and there is no such tax in the rest 29 States across the country, Panda said during import, traders generally bear transport cost of nearly 5 to 7 per cent.
“In addition to that 5 per cent VAT is very sufferable for us. The irony is that the State Government is not getting the tax completely. Hence, we will stop importing the products fromApril 1,” informed Panda.
In April last year, traders had resorted to a week-long stir and had stopped imports of wheat, wheat products and pulses over non-fulfilment of their demand for withdrawal of VAT on these food products.
But, the Finance Department had ruled out a VAT waiver, citing such a decision cannot be taken unilaterally by the State Government.
Odisha was levying VAT at the rate of five per cent on these commodities as per the recommendations of the empowered committee.