UP 'bandh' on Oct 4 over hike in VAT

Traders in Uttar Pradesh will keep their establishments closed on October 4 to protest the proposed increase in value-added tax (VAT) and the entry tax in the state.

Addressing the media here this evening, UP Udyog Vyapar Pratinidhi Mandal President and Rajya Sabha MP Banwari Lal Kanchal said the “anti-trader” face of the state government headed by Mayawati had come to the fore with the increase in VAT and entry tax.

“We were always against the implementation of VAT in UP and now the state government has increased the rates further. This increase will result in heavy losses to the traders and render businesses unviable,” he claimed.

“The VAT rates in the neighbouring states of Uttarakhand, Delhi, Bihar and Madhya Pradesh are 4 per cent and the same has been hiked to 12.5 per cent by the Mayawati government,” he added.

On September 13, the state cabinet had decided to increase VAT on several items with some products witnessing almost three-fold increase. This was aimed at augmenting the state revenues by Rs 1,200 crore annually.

A rival traders’ organisation headed by Shyam Bihari Mishra had also given a call for the state bandh today over the same issue.

The bandh call, however, evoked only a partial response.