: Wheat products like flour, suji, maida and all varieties of pulses will vanish from Malgodown, the biggest wholesaling market of the State and other business centres from Tuesday as traders here have decided not to trade in these products as they invite an exorbitant five per cent VAT.
These products do not invite VAT in neighbouring and many other States of the country.
“Demanding withdrawal of VAT on wheat products and pulses, we have submitted several memorandums to the State government.
Since the Government was non-committal to our demands, we had given an ultimatum to stop trading on these products from December 9,” said Srikant Sahu, the joint secretary of traders association here.
Accordingly, all the chambers of commerce across the State had been informed about it, Mr. Sahu said adding that no trader would order for these products or sale them until VAT is removed from wheat products and pulses. “The existing stock of these products in Malgodown would exhaust in a day or two,” Mr. Sahu warned.
Odisha is a major consuming State in terms of wheat products and pulses. Out of nearly nine lakh tonnes of these products consumed in the State, Odisha produces only ten per cent of its demand; sources said adding that the annual business turnover of these products crosses Rs. 4500 crore.
“The 5 percent VAT on these products in the State results in price difference of Rs. 300 per quintal in comparison to neighbouring States,” said a pulses trader disclosing that the arbitrary VAT imposition has given way to unfair trade practices as a result against a revenue target of Rs. 225 crore, the government ends up collecting a meagre Rs. 30 crore.
On the other hand, the traders suggest that the Government would benefit considering imposition of only 1 per cent entry tax on these products and do away with VAT burden like in 23 other States of the country.
Wheat products, pulses likely to disappear from market due to impasse over VAT
Source: http://www.thehindu.com/todays-paper/tp-national/tp-otherstates/foodgrain-crisis-looms-large-in-odisha/article6674414.ece
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