Traders oppose new tax code

Traders, under the banner of Rashtriya Vyapar Mandal (RVM), announced to oppose the new tax code, the draft of which was submitted by Union Finance Minister Pranab Mukherjee on August 12.

The traders allege that the new tax code was not in the right direction and far from rationalising the tax structure, it was “atrocious” on the tax paying people and firms.

“We will not accept new tax code at any cost and will soon make a representation to the finance minister with our set of suggestions,” RVM President and former Rajya Sabha member Banwari Lal Kanchal said during a conference call.

The mandal has convened a meeting of all its state units in New Delhi next month to chalk out the future course of action.

“There are several proposals in the new tax code, which will put heavy burden on the salaried class and put medium and small traders at a disadvantage vis-à-vis industrialists,” he added.

Kanchal said now the retirement benefits and other perks of salaried employees would come under the tax net.

“While, the tax on big companies has been reduced from 30 to 25 per cent, medium traders’ firms will be taxed at 30 per cent,” he noted.

Besides, the power of commissioners to waive off penalty on defaulters has been waived, which will give rise to corruption, Kanchal added.

He lamented the Centre had not accepted the long pending demands of traders viz enhancing the audit and cash transaction limits from Rs 40 lakh to Rs one crore and Rs 20,000 to Rs one lakh respectively, Rs 10 lakh accidental insurance of traders and income tax exemption limit of Rs 3 lakh.