Traders Federation protests VAT regime; warns stir from Dec 26

Chennai, Dec 18 (UNI) The Tamil Nadu Traders Federation today announced a series of agitations from December 26 to protest against the implementation of Value Added Tax (VAT) system in the state from January 1, 2007.

Talking to newspersons here, Federation President T Vellaiyan said traders would launch a token demonstration in front of the state and Central Government offices in all district headquarters on December 26.

From December 26 to 31, zonal conferences would be held in Chennai, Thanjavur, Maduari, Kanniyakumari, Salem and Vellore districts and during those days, shops would down their shutters in the respective districts as a mark of protest.

On January 1, when the state brings into force the new tax regime, 100 traders, drawn from various districts would take out a ''Campaign Rally'' in the city and burn foreign goods near Gandhi statue on Marina.

The protestors, led by him would also put copies of Tamil Nadu Government's VAT legislation in the fire, to express their displeasure over its implementation.

Describing VAT as a ''foreign act'', Mr Vellaiyan said the act might suit the foreign countries, where the ''Mall culture'' has come to stay, but not in India, where a majority of people still visit their neighbourhood shops.

When there was no tax evasion in the existing tax collection system, which also ensured adequate revenue to the government, where was the need for bringing in VAT, he asked.

VAT would sound the death knell to the retail traders, he said adding if the tax was introduced, hundreds and thousands of retailers would be rendered jobless. He condemned the Centre for offering a red carpet for Reliance and US-based Walmart to enter the retail segement.

He said ''online trading'', which was gambling and attempts to close shops located in residential areas in Delhi, were aimed at crushing retail trade in the country.

UNI WS VD GC1844