Traders want withdrawal of VAT, oppose FDI in retail

Vellore, Tamil Nadu, Jan 30 (UNI) The Zonal Conference of the Tamil Nadu Traders Federation today asked the government to withdraw Value Added Tax (VAT) and disallow foreign firms and Indian monopolies in retail trade.

The conference held under the chairmanship of Federation President T Vellaiyan passed resolutions on several issues, including VAT and FDI in retail sector.

The traders cannot follow the concept of input-output set off under VAT which, the conference alleged, was forcibly implemented to pave way for foreign investment in retail, it claimed.

It also claimed the prices had risen in states where VAT was introduced besides leading to confusion in its implementation.

On retail it said the entire trading community risked losing its livelihood with the entry of FDI and Indian monopolies in retail sector.

Hence, they should barred from entering the sector, the conference demanded.

The traders also wanted the government to drop the Special Economic Zone (SEZ) proposals as they had the propensity to create social inequity besides going against the national policy of self-dependence and the law.

Online trading also came under strong criticism with the federation saying gambling in prices led to allround increase in prices besides destroying trade.

This should be banned, it said while seeking CBI probe into the 'gambling by a few Centre Government organisations which could have apparently caused a loss of over Rs five lakh crore.' The levy of Service Tax had imposed unbearable burden on the people, the conference said while seeking its withdrawal.

Beginning with five per cent on three categories of services in 1994, today the Service Tax rate stood at 12.24 per cent covering 92 sectors affecting various sections of the society, it claimed.

The conference also wanted a stop to the sealing drive in Delhi aimed at commercial enterprises operating in residential areas.

The federation had called for shops to down their shutters in six districts of Tami Nadu today and tomorrow in protest against VAT.

UNI