A section of sales tax officials in Kerala was "instigating" local traders to protest the introduction of value-added tax (VAT) in the state as its introduction would deprive them of the opportunity to pocket money through corrupt means, state finance minister K Sankaranarayanan said.
The minister, who was addressing a press conference here, said he saw no reason for traders to agitate against the introduction of VAT as it does not impose any additional burden on them. Since sales tax is paid by consumers, all that traders have to do is to just remit the collected amount to the government.
Discussions were held with trade organisations for the introduction of VAT and their suggestions were incorporated in the VAT Bill. Besides, the government has shown its readiness to help traders if they face any difficulties after the introduction of VAT, he said.
Alleging that a section of tax officials were behind the agitation of traders, the minister said these officers were opposed to VAT as they would find it difficult to blackmail traders and pocket money from them.