Traders threaten stir from March 29

New Delhi, March 9 | Updated: Mar 10 2005, 05:30am hrs
Intensifying their stir against the implementation of value-added tax (Vat) from April, traders on Wednesday threatened to down shutters for four days from March 29 and warned of tough days ahead for the government.

We will hold a 96-hour bandh from March 29 to April one all over India and the shops including medical stores will remain closed, Akhil Bharathiya Udyog Vyapar Mandal president Sandeep Bansal told reporters after its symbolic one-day strike on Wednesday.

Cautioning the government that implementation of Vat would result in inflation, he urged the state governments not to implement Vat.

We will fight tooth and nail and never accept Vat. If our demand is not met, then it is going to be tough days ahead for the governments, he said, adding that the traders would hold demonstrations in all district headquarters on March 16.

However, Vat committee chairman Asim Dasgupta said the new time-tested tax was not inflationary and state would stand to gain because large scale evasion would come down.

Once Vat is implemented, necessary record keeping would be required to get the credits for the tax paid at the earlier stage, according to Vat committees white paper. However, Mr Bansal said traders would not be able to keep records for the purpose of calculating Vat.