Mixed response on UP Bandh over VAT implementation

Lucknow, Sep 11 (UNI) Uttar Pradesh Udyog Vyapar Pratinidhi Mandal , a trader organisation affiliated to the opposition Samajwadi Party, sponsored a 'state bandh' today to protest the implementation of the Value Added Tax (VAT) regime in UP, which evoked a mixed response.

Reports of minor clashes were received from Meerut, Gonda, Bareilly and the State capital, while train services were disrupted in Khurja and Mathura.

However, the officials claimed ''the bandh was peaceful and no arrests were made by the police.'' In Lucknow, police resorted to mild force to disperse a mob led by traders near the Vidhan Sabha, when they tried to burn the effigy of VAT.

Main markets in the State capital were closed till afternoon, but other things were normal.

Clashes between rival trader groups were also witnessed by some other cities, reports added.

Meanwhile, Mandal general secretary Triloki Nath Agarwal told mediapersons here the bandh was successful and the traders fully supported the VAT protest.

Mr Agarwal said they will not accept the new tax regime in the present form, which he termed as ''anti-trader.'' ''The government should implement the new VAT system for those traders, whose annual business was over Rs 15 lakh. At present, the government has proposed to bring all the traders, whose business stood at Rs five lakh yearly under the new regime, probably to be implemented in a phase manner this financial year,'' he charged.

Mr Agarwal claimed ''the new VAT system will only bring corruption and harassment for the traders, while the revenue of the government will plunge and the consumers will have to pay more for their purchase.'' On August 22, the activists of the same trader group led by its president and SP MP Banwari Lal Kanchal held a violent protest in Lucknow and Varanasi against the retail chains, which forced the Mayawati government to order closure of all Reliance Fresh outlets in UP over law and order problem.

Meanwhile, the State Government is preparing itself to implement VAT from this financial year. The government had already distributed draft proposal of the system and invited objections by August 31.

The policy will be finally drafted by mid-September so that it could be implemented in a phase manner by the end of this year, official sources confirmed.

UNI