From Our Special Correspondent
Daijiworld Media Network - New Delhi
New Delhi, March 26: In an unusual protest, a large number of traders in the national capital of Delhi carried out a ``VAT Shav Yatra” and burnt the effigy of Value Added Tax system to register their resentment and anguish over the Delhi government’s move to hike the VAT rates on a large number of commodities in the 2010-11 budget proposals.
The agitating traders gathered at Bara Tooti Chowk, Sadar Bazar in walled city area of Delhi and criticised Delhi government’s contention that VAT slabs and diesel prices have been raised to mobilise funds for the Commonwealth Games.
The Confederation of All India Traders (CAIT), which organized the protest, has also announced that the traders in Delhi will be observing a bandh till 1 pm on Saturday.
CAIT Secretary General Praveen Khandelwal has in a press statement urged the Delhi Government to roll back the proposals of increase in VAT as it will result into migration of business from Delhi to other states causing a revenue loss of about Rs 5000 crore instead of expected increase of Rs 850 crore as claimed by the Delhi government.
"The half day Delhi Trade Bandh is a symbolic gesture to persuade the government to take a corrective action in the state budget presented in Delhi Assembly,” Khandelwal said adding: “If the Delhi government does not take immediate corrective steps, further course of action will be decided at a meeting scheduled to be held on April 2 at New Delhi.’’
Prominent trade leaders of Delhi Praveen Khandelwal, Murli Mani, Ramesh Khanna, Narender Madan, Satish Garg, Vijaypal,Devraj Baweja, Pawan Kumar, Satender Jain, Ramesh Kapoor, Pawan Jhalani, Amrit Lal Bansal and others led the protest.
The trade leaders charged the government of backtracking from solemn promises of having uniform VAT slabs in the country as stated in White Paper on VAT released by the then Union Finance Minister P Chidambaram in January 2005.
The primary objective of VAT in having unified taxation system in the country has been grossly violated by Delhi Government and business was likely to shift to other neighboring states like Uttar Pradesh, Rajasthan, Haryana, Punjab and Madhya Pradesh.