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Samajwadi Party protests VAT in Uttar Pradesh

By IANS

Lucknow : Activists of Uttar Pradesh’s opposition Samajwadi Party Thursday staged state-wide protests and demonstrations against the implementation of value added tax (VAT) from Jan 1.

In a memorandum addressed to President Pratibha Patil, the party demanded immediate reversal to the erstwhile sales tax regime.

Samajwadi Party workers led by prominent party leaders staged demonstrations at all district headquarters raising slogans against the Mayawati government as well as against the new tax regime, which they termed as an “anti-trader” and “black law”. They courted arrest in several places.

In this state capital, the demonstration was led by Samajwadi Party general secretary Amar Singh who alleged that some senior party leaders were disallowed from entering certain districts and also complained about police baton charging demonstrators in half a dozen places.

In a common memorandum handed over to district magistrates, the party alleged that “the VAT will make things extremely cumbersome and difficult for the ordinary trader, who will now have to not only maintain computerised records but also multiple bill-books.

“The VAT system will ruin the ordinary retailer, while benefiting only big showrooms and departmental stores run by big industrial houses,” it said.

“The multi-point tax system would enhance the prices of essential commodities, thereby making things dearer for the common man.”

The president’s attention was also sought to be drawn to the fact that the rate of tax had been increased on various key goods including electrical items.

The VAT on rice and wheat was also criticised. “As many as 19 states have exempted wheat and rice from VAT, but the Mayawati government has included even these items,” the memorandum said.

It also demanded withdrawal of VAT on transport services, electronic goods as well as handicraft items.