TN Traders' Association opposes VAT, plans agitation

Chennai, Dec 7 (UNI) The Tamil Nadu Traders' Association today strongly opposed the state government's move to bring in Value Added Tax (VAT) regime from January one and threatened to launch an agitation if the government did not withdraw its decision.

Talking to newspersons here, Association President T Vellaiyan said traders would meet here on December 15 to discuss the issue and chalk out different mode of agitations to protest against introduction of VAT, which was bound to affect nearly ten lakh traders in the state.

It was unfortunate that Chief Minister M Karunanidhi, who had introduced single point tax system in the state, was once again bringing in the multi-point tax system in the form of VAT, which would not only burden the traders, but also the farmers and consumers at large.

In a memorandum to Mr Karunanidhi, the association said the state government by switching over to VAT regime, forefeited its taxation rights, which was against the concept of state autonomy and demanded that the government drop the move.

It assured fullest support for any further tax reforms to enhance government revenue.

Mr Vellaiyan said introduction of VAT would lead to escalation in prices of all commodities and the additional tax burden would only be passed on to the consumers.

Some of the commodities, which attracted four to eight per cent tax presently, would attract 12.5 per cent tax, if VAT was introduced, he added.

He said the new regime would only lay a red carpet welcome to multinational companies like Walmart and Reliance, which was all set to enter the retail market in the country.

It was unfortunate that India was once again paving way for the East India Company culture, by allowing Walmart to enter retail market on August 15 next year. The traders were gearing up for a second Independence war, Mr Vellaiyan said.

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