Anti-VAT protests getting louder in UP

Protests against the hike in Value-Added Tax (VAT) in Uttar Pradesh are getting louder with each passing day, with the chemists and druggists in the state joining the bandwagon.

The UP Chemists and Druggists Federation (UPCDF) on Sunday announced total closure of all the wholesale and retail shops in Lucknow on October 8, to protest the hike in the VAT rate from 4 to 12.5 per cent on surgical and medical devices.

Addressing the media here, Federation General Secretary Suresh Gupta said the latest hike would only encourage smuggling of surgical items from the neighbouring states of Delhi, Madhya Pradesh, Rajasthan, Bihar and Uttarakhand.

“All the states in the country have uniform VAT of 4 per cent on surgical items except UP. This hike will result in smuggling of surgical items worth Rs 60 crore per month into the state,” he added.

Gupta noted that not only the common man would suffer due to this hike, the state will also lose precious revenue due to smuggling.

The Federation — having a membership of about 1.25 lakh in UP — recently met senior officials of the state tax department and urged for an immediate roll back of VAT rate.

“If the state government fails to act even after October 6, we will chalk out our future course of action and may even proceed to UP ‘bandh’ after a fortnight,” Federation patron Giriraj Rastogi informed.

On Saturday, the UP Udyog Vyapar Pratinidhi Mandal, headed by Rajya Sabha Member of Parliament Banwari Lal Kanchal, had observed UP ‘bandh’ against the hike in VAT over several items of daily use.

The ‘bandh’ evoked mixed response in the state. Meanwhile, the Indian Industries Association (IIA) has also criticised the state government for the increase in VAT and imposition of entry tax on industrial items/inputs.

IIA Executive Director D S Verma said it would hamper the industrial growth in the state. “Industries in UP would be wiped out and further investments would dry up. Unemployment will increase and ultimately the poor will suffer the most,” he observed.

The IIA will organise rallies and demonstrations at all the district headquarters on Monday, including Lucknow. The Association will later submit a memorandum to Chief Minister Mayawati, demanding the roll back of VAT rates and entry tax.

“Industrialists in UP, who had been supporting the implementation of VAT, are now forced to take to the street,” Verma lamented.