FAM announces bandh tommorrow to protest imposition of VAT

Mumbai, Apr 10: Federation of Associations of Maharashtra (FAM) has announced a day-long token bandh tomorrow to protest against Maharashtra government's decision to impose Value Added Tax (VAT) on essential agricultural commodities like grains and pulses along with tea powder.

FAM president Mohan Gurnani said that it was expected that agro-essential commodities would be exempted from VAT with effect from April 1 this year, but the government was instead going ahead with position of VAT not only on agro-essential commodities but cereals and pulses as well.

VAT on tea powder has increased from four per cent to 12.5 per cent, which is being strongly opposed by traders. Wholesale traders have decided to boycott daily business from tomorrow.

It is feared that this well result in loss of business to neighbouring states like Karnataka and Madhya Pradesh, who have decided to waive tax in the interest of consumers.

The prices of these commodities would sky rocket if they are not exempted from VAT. Also the major trade activities will shift from Maharashtra to neighbouring states, Mr Gurnani added.

UNI