Traders in three cities to boycott VAT, CST

Though State Government has decided to abolish octroi in seven cities of the state from November 15, 2007, traders in three cities of Saurashtra— Rajkot, Jamnagar and Junagadh—have raised hackles against government’s move to levy an alternative tax to octroi. To protest they have decided not to pay value-added tax (VAT) and central sales tax (CST).

The decision not to pay Vat and CST was taken in a recently held meeting of Octroi Abolishment Effort Committee in Rajkot, which was attended by all the traders’ organisations and industry bodies except the Rajkot Chamber of Commerce and Industry. The traders gathered at the meeting and unanimously demanded the abolishment of octroi and refused to accept any alternative tax.“The state government’s decision to abolish octroi from November 15, 2007 is deceptive especially when efforts are being made to remove octroi for the past 5 years,” said industry representatives from 3 cities.

A strict bandh was observed in these cities on Thursday last week despite the announcement of removal of octroi in the seven cities. Now traders will boycott Vat and CST from Monday.

Under increased pressure from traders to abolish octroi the state government last week decided to carry out its decision after Diwali. State government also made it clear that it would come out with an alternative to octroi so that the financial health of the municipal corporations was not adversely impacted.