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Pune, Pimpri-Chinchwad, Nagpur traders intensify agitation against LBT
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Wednesday, 03 April, 2013, 08 : 00 AM [IST]
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Akshay Kalbag & Abhitash Singh, Mumbai
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fiogf49gjkf0d Traders' associations in Pune and Nagpur have launched an indefinite agitation against Local Body Tax (LBT) – a replacement for octroi.
The new regime was implemented in the two cities and some other municipalities from April 1, 2013. In Pune, the agitators made a representation to the Pune Municipal Corporation (PMC) suggesting an additional surcharge on value-added tax (VAT) as an alternative measure.
Ajit Sethia, president, Poona Merchants' Chamber, informed FnB News, “The traders approached the city's mayor Vaishali Sunil Bankar and PMC commissioner Mahesh Pathak with their demands – the most prominent of which was the abolition of LBT – and threatened to intensify the strike till the government regulation regarding the levy is published.”
Stating that it is impossible for smaller shops to hire a chartered accountant and file LBT returns, he said, “Pathak said the law is already in force. The Government of Maharashtra has introduced LBT and the PMC is merely an implementing authority. Over 50,000 traders have taken to the streets in a morcha that commenced from Mandai to the PMC headquarters.”
Pimpri-Chinchwad
When quizzed about the news regarding harrasment of traders with regard to LBT, Gajanan Babar, Shiv Sena MP from Maval, said, “In Pimpri-Chinchwad, the April 1 bandh by traders was 100 per cent effective. All the shops, including paan-beedi shops, were shut, and they would remain shut until the government abolished LBT.”
Accusing the government of trying to fool the traders and shopkeepers by introducing LBT, he added, “Anyone who earns more than Rs 1 lakh per annum will have to pay the local body tax to the municipal corporation. This will increase the harassment on traders and shopkeepers and the inspector raj will be more pronounced.”
“Instead of doing away with octroi and replacing it with local body tax, they should have increased the rate of value-added tax by one per cent. Recently the rate of VAT was increased from four per cent to five per cent. They should have increased the rate of VAT to six per cent,” Babar suggested.
Nagpur
Tejinder Singh Renu, secretary, Vidarbha Taxpayers Association (VTA), Nagpur, said, “The bandh by traders and others associations was 100 per cent successful because most of the establishments were closed to support the protest. LBT is another way of harassment by the government and it has been successful in it.”
He added, “ Today afternoon three writ petitions challenging the imposition of LBT by VTA, Nagpur Chamber of Commerce (NCCL) and Nag Vidarbha Chamber of Commerce (NVCC) were heard at Nagpur Bench of Bombay High Court and in line to order dated 26th March, 2013, interim relief for granting stay on imposition of LBT was refused, however they were admitted for final hearing.”
Renu further said, “On 2nd April anytime the meeting of all associations which would be affected by LBT would be held and the final decision regarding further steps would be taken. Not only the traders and shopkeepers but common man would be affected by LBT.”
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