Federation of Associations of Maharashtra (FAM), which has been opposing the imposition of local body tax (LBT), has called a meeting of the presidents of all member associations on April 28 in Navi Mumbai to work out the future course of action.
FAM, representing 750 trade associations, has also asked the traders not to apply for registration of LBT and local panchayat tax (LPT) in the state.
"Those traders who have already taken registration, should return it to the government," FAM president Mohan Gurnani said while addressing nearly 50,000 traders, demonstrating at Azad Maidan here.
"The court verdict on LBT is expected on May 7, after which a team of 51 volunteers under FAM will visit every village to create awareness against LBT," he said.
FAM has also threatened that traders' agitation will continue until the LBT is abolished.
Meanwhile, FAM has also asked the government to implement the Gujarat taxation model instead of LBT and octroi.
"Traders are always willing to pay the legitimate taxes, but traders do not want harassment and corruption. The government can levy surcharge on VAT instead of LBT. We demand ceasing of LBT act, abolish octroi and adopt Gujarat taxation model," FAM General Secretary Muhammadali Patel said.
LBT was imposed from April 1 this year in Kolhapur, Pimpri-Chinchwad, Solapur, Vasai-Virar municipal areas. It will come into effect in Mumbai from October 1.
LBT is the tax each trader will have to pay for goods they import in the city for trading. The idea is to abolish the bottlenecks associated with the current methods of octroi collection, thereby improving efficiency in the movement of goods.
Octroi is a tax levied on the entry of goods into the city.
