The process of collection of riverbed materials from Gola river, which has remained disrupted due to the hike in VAT on mining from 5 to 13.5 per cent, is likely to resume from Friday.
The State Government had earlier agreed to reduce transit fees from Rs5 per quintal to Rs1.50 per quintal. Now, it has also agreed to revise the VAT on mining from 13.5 to 9 percent. Therefore, the collection of riverbed materials may be started from Friday, said the traders, including vehicle-owners associated with the collection of riverbed materials. The fact is that the collection of riverbed materials that was started from the Gola river on November 21 was badly hit due to the said VAT and transit fees issues.
Out of about 7,000 vehicles registered with the regional transport department for the task, only about 1,000 vehicles are presently collecting the riverbed materials from the Gola river. Thus it has caused huge loss in terms of revenue to the State exchequer. As the traders associated with this trade further say that the State Government on an average loses Rs 4 crore daily following less collection of riverbed materials from the Gola river this season. All gates of the Gola riverbed are opened for collection of the riverbed materials, said NC Pant, SDO, Terai- east forest division.
But presently only about 1,000 or so vehicles are collecting the riverbed materials, added Pant. Notably, over 50,000 workforce in terms of labourers and 7,000 vehicle owners are engaged in collection of riverbed materials from the Gola river in Haldwani. Since the owners of the stone-crusher companies are not accepting the riverbed materials due to hike in VAT on mining we are facing a huge financial loss, regretted the vehicle owners. Now, after the VAT and transit fee issue being resolved, hopefully, the collection of riverbed materials work would go on smoothly, they added. The traders associated with the collection of the riverbed materials had earlier taken to the streets here in protest against hike in VAT on the mining.