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After getting assurance from the state government to consider the waiver of five per cent VAT (value added tax) on pulses, wheat and wheat products, the food grain traders today called off their strike during which they had stopped import and sale of these essential food items.
The traders were on strike since December 9, raising fears of acute shortage of pulses and wheat products, for which the state is dependent on imports from other states to meet its demand.
“The state government has sought four months to fulfil our demands and we have allowed them. The decision of the traders to stop import of pulses, wheat and wheat products from outside the state from December 9 is withdrawn,” said Sudhakar Panda, general secretary, Odisha Byabasaee Mahasangha.
After the receipt of a written assurance from the Special Commissioner Commercial Taxes (Policy), the strike has been called off, he added.
“On the request of the office of commercial taxes and in the interest of the general public, we have assured the government to support and assist in the exercise to withdraw VAT on the scheduled items latest by April 1, 2015,” an official release of the traders’ body read.
The decision to consider the demand of the traders was taken at a meeting between the representatives of Byabasaee Mahasangha and additional chief secretary (finance) in presence of the commissioner, commercial taxes.
“The state government is hopeful that the list of items to be included and excluded in the proposed Goods and Services Tax (GST) will be finalized in about two months. Then it will be easier to meet our demand if the food grains are declared as tax free item,” Panda said.
The traders’ body has been demanding exemption of VAT on the commodities as is the case in majority of the states in the country. About twenty three states of the country have exempted VAT on the pulses, wheat and wheat products. In lieu of VAT, the trade association had proposed the state government to levy one per cent entry tax.
