By Bizodisha Bureau, Bhubaneswar, April 13, 2015 :

The traders’ body earlier in the day had a meeting with the state government on the issue of exemption of five percent VAT on pulses, wheat and wheat products where it was jointly decided to form a joint seven-member committee to look into the issue. The committee will have four government officers and three representatives from the traders.

The committee will carry out a study on the issue and submit its report to the government within three months. Based on the committee’s report, the government will take a final call to which both the parties agreed at the meeting.

Finance Minister Pradip Amat, Food Supplies and Consumer Welfare Minister Sanjay Dasburma, office bearers of the FAOTA and senior officers of the state government were present during the meeting held in the evening.

Traders in the state went on a strike on April 9 demanding waiver of the five percent value added tax (VAT) on pulses, wheat and wheat products from outside the state.

Pointing out that 24 states had waived VAT on these items, the traders body had proposed imposition of one percent VAT in lieu of five percent VAT on these items, a suggestion the government has rejected saying that the matter was sub-judice.