With the state government unable to address their demand of exempting food items from a VAT of 5 per cent, members of Federation of All Odisha Traders' Association (FAOTA) have threaten to stop importing essential commodities from April 1.
The traders body has been demanding exemption of five per cent value added tax (VAT) imposed by the state government on food items like pulses, wheat, edible oil, wheat products and others.
"We have been demanding exemption of VAT for the benefit of more than 4 crore people of the state and growth of all traders across the state," FAOTA Secretary Sudhakar Panda said.
While 25 of 29 states in the country are not levying VAT on pulses, wheat and other food items, the Odisha government is imposing it. It is the consumers who are bearing the brunt, he said.
In a meeting on March 26, "the state government had assured us to bring down the tax on pulses to 1 per cent from 5 per cent and to discuss the tax rate on other essential commodities. But, in today's meeting, it was in no mood to listen to us and tried to delay things," Panda added.
Now, the traders body said it would go by its earlier decision of stopping import of food items from other states.
Meanwhile, the state government has sought cooperation of the traders requesting them not to stop import of essential commodities.
Odisha Finance Minister Pradip Kumar Amat and Food Supplies and Consumer Welfare Minister Sanjay Dasburma have asked the body to hold another round of meting after the Budget Session of Assembly.
