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Rajasthan to observe bandh against VAT

The traders are protesting disparities in the Value Added Tax regime introduced in the state from this fiscal.

india Updated: Apr 12, 2006 14:15 IST

The traders in Rajasthan will go ahead with the planned token shutdown on April 13 despite the state government announcing the exemption of 13 items from VAT.

The traders are protesting disparities in the Value Added Tax regime introduced in the state from this fiscal.

The bandh would seek a VAT structure in Rajasthan similar to that implemented in other states.

The rate and structure of the tax should equal that levied in neighbouring states which implemented VAT, Prem Biyani convenor, State Sakal Udyog Vyapar Sangarsh Samiti, a joint organisation of business and industrial organisations, said on Wednesday.

The system for reimbursing VAT paid on inputs was also defective and the state government had fractured the main policy, he said.

Barring essential services such as medical facilities and public transportation, the bandh would be total, Biyani said.

Rejecting the state government's fresh sops on 13-more items announced on Tuesday, Biyani said it was insufficient and meant to disturb the unity of the Sangarsh Samiti.

Meanwhile, the VAT empowered committee chairman SN Gupta outrightly rejected the proposed Rajasthan Bandh saying it was illogical and unwarranted.

Input credit would not lapse Gupta said, adding the state government was working with an open mind and would accomodate all small and medium traders under the VAT regime.

First Published: Apr 12, 2006 14:15 IST