Odisha traders today called off their five-day long strike after the state government announced setting up of a committee to examine their demand of lifting VAT on pulses, wheat and wheat products.
The Federation of All Odisha Traders' Associations (FAOTA) decided to withdraw the strike following an agreement with the state government at a meeting convened by Finance minister Pradip Kumar Amat and attended by Food Supplies and Consumer Welfare minister Sanjay Dasburma.
According to the agreement at the meeting, the state government will set up a 7-member committee comprising four members from the administration side and three members from traders, to study different aspects associated with the proposal of lifting 5 per cent VAT on pulses, wheat and wheat products, an official said.
The committee will submit its report within three months, he said adding the traders have agreed to cooperate with the government till then.
The traders on April 9 stopped importing pulses, wheat and wheat products from other states demanding lifting of VAT on such products like in neighbouring states. While nearby states do not charge VAT on dal and wheat, Odisha collects 5 per cent VAT on the products, the traders pointed out.
They suggested that the state government may impose one per cent entry tax on pulses and wheat products in order to overcome the loss due to lifting of VAT. However, the state government rejected the proposal and maintained that it is not possible to lift VAT and impose entry tax on dal and wheat as the matter relating imposition of entry tax on food products is restricted.
"We called off the strike with a good faith and in view of the consumers' interest. We hope that the government will consider our demand seriously," said FAOTA secretary Sudhakar Panda.
Panda said the 2500 traders have been told to continue importing pulses and wheat products from other states as earlier. Odisha imports 3,000 tonne of wheat and wheat products and 2500 tonne of pulses everyday, he said.
