Uttar Pradesh - IT Market Shut Down To Continue In UP Against VAT Hike

IT market in Uttar Pradesh observing a complete shutdown as the agitation against VAT hike entered in its fifth day on Saturday. The intense agitation of channel community is now getting much more attention since it started on 22nd of September. More than 100 IT traders are continuously staging “Dharna” outside Lucknow Vidhansabha demanding roll back of decision taken by the government. “This is a very serious issue as government is not caring for our interest. We will not accept this much of hike as well as additional entry tax on all goods including IT products. We are protesting from past five days and we will continue to do so until and unless government withdraws this decision,” says, Praveen Khanna, General Secretary, Lucknow Computer Vyapar Mandal (LCVM).

UP government is facing strong protest from the entire UP channel community since last five days against the recent announcement of government to increase Value Added Tax from 4% to 12.5%. Apart from VAT increment, the government has also re-introduced Entry Tax of 2% to implement on various products including IT goods. “The state adjoining UP whether its Delhi or Uttarakhand has 4% VAT and UP government decision to increase VAT will lead to loose our business as consumer will prefer to buy it from neighboring states. It will also increase the grey market in UP. It all will create an unhealthy environment in UP IT market,” says, Sanjay Gulati, President, LCVM. 

Market is observing a complete shutdown since Monday as there is immense support from all resellers, dealers, distributors and vendors across the state. Praveen says, “Entire channel community across the state as well as vendors have come together to protest against this hike. We have stopped billing until the issue is resolved.” The market observes a huge revenue loss since Monday. He further adds, “We are suffering a huge revenue loss as its fifth day of protest. We are supposed to loose at least 100 corers as UP IT monthly market is more than Rs 200 crore. Yet we will fight for this.” 

Now apart from IT market, other industries have also come together against the government’s decision. UP Vyapar Mandal has also announced a state “bandh” on 29th September along with the IT association. “As its affecting other industries also, they have also come forward to protest VAT hike. On Monday, we have announced complete UP “bandh” if issue not resolved. Government should take it very seriously and try to sort out on emergency basis,” Praveen told. 

It’s definitely going to be tough time for the traders, consumers and common people in coming days. Government will have to look into the matters and try to solve the issue immediately to save the interest of entire traders of UP.

Source : itVARnews.net (press release) - Delhi, Delhi, India, dated 27/09/2008