Kerala traders continue ban on cigarette sale

Kozhikode, Apr 16: Traders in Kerala today resolved to continue with the ban on sale of cigarettes to protest against certain tobacco-manufacturers' reluctance to pay Value-Added Tax (VAT) for the products.

''We will not sell cigarettes until the ITC, which had a market share of 90 per cent in the state come to terms by accepting Value Added Tax net'', Kerala Vayapari Vyavasayi Ekopana Samithi President T Naseeruddin said today.

He said a trader gets 0.50 paise after selling Scissors, a popular brand, worth Rs 700 and added that ''why should we take risk by investing huge amount for such a pittance.'' He said the traders had no other options but to ban the products as the distributors were not considering their ''just and resonable demands.'' Even a meeting convened by Tax Commissioner Paul Antony had failed to resolve the issue, he said.

When pointed out that cigarette sale continued in certain areas, he said the distribution of cigarettes would be stopped completely from today.

The stock with wholesalers and retailers would be exhausted in two days.

Stating that the traders would oppose tooth and nail the reported move by the distributors to sell the products direct to consumers on bicycles, he said it was not practicable as there were many hurdles, including possession sale permit.

Meanwhile, Mr Naseeruddin said he had information that the ITC representatives were scheduled to meet State Finance Minister T M Thomas Issac later in the day to resolve the crisis.

Kerala, which sold cigarettes worth Rs three crore, incurred an estimated loss of Rs 3.75 lakh per day as traders stopped selling the products.

UNI