By Bizodisha Bureau, Bhubaneswar, April 8, 2015 :

The Federation of All Odisha Traders’ Associations (FAOTA) will go on an indefinite strike from Thursday demanding exemption of value added tax (VAT) on pulses, wheat and wheat products. The second round of talks between the Association and the state government on Thursday also failed to break the ice.

The FAOTA will now stop import of these commodities, 90% of which is imported from outside states.

“Talks had failed yesterday since the government remained adamant in its position. They insisted that they can only make any commitment on the matter only after the introduction of the goods and service tax (GST), which was not acceptable to us,” said FATO general secretary, Sudhakar Panda.

The traders’ body had already stopped generating waybills, a prerequisite for import of goods from outside the state, since Sunday.

A five-member team of representatives from FAOTA held discussions here with Finance secretary, food, supplies & consumer welfare department secretary and commercial tax commissioner to press their demands.

According to the traders’ body, 24 states have not levied VAT on these essential commodities. “Around 2500 traders will not procure these essential commodities till our demands are met. We had called a strike in December last year and the government had assured us to look into our demands. Already four months have passed and the government has not lent an ear to our demands following which we have decided to go on an indefinite strike from tomorrow,” the FAOTA sources said.

The Federation claimed and added that the state government should get tax to the tune of Rs 225 crore.However, due to inefficiency of the administration, it could only collect a meager Rs 30 crore to Rs 40 crore.

The Federation also made a startling revelations that stated that the state government is incurring a loss of around Rs 185 crore towards revenue collection due to involvement of corrupt officials and unscrupulous traders.

The traders had been opposing the five percent VAT collected on these food items.

In December last year, the traders had gone on a two-day strike stopping import and sale of pulse, wheat and wheat products demanding waiver of the levy.

The stir was then called off after a written assurance from the office of the Commissioner, commercial taxes, to look into their demands. The government had assured them to look into the issues and urged them to call off the agitation for three months.

Meanwhile, the traders at Malgodown, the largest business hub of wholesalers of consumables, in Cuttack city have decided not to join the indefinite stir called by FAOTA on Thursday demanding abolition of 5 per cent value added tax (VAT) on pulses, wheat and wheat products, though they extend their support to the traders’ body.