VAT: Traders plan 4-day strike from Mar 29

Intensifying their stir against the implementation of value added tax from April, traders on Wednesday threatened to down shutters for four days from March 29 and warned of "tough" days ahead for the government.

"We will hold a 96-hour bandh from March 29 to April 1 all over India and shops including medical stores will remain closed," Akhil Bharathiya Udyog Vyapar Mandal president Sandeep Bansal told reporters after its symbolic one-day strike on Wednesday.

Cautioning the government that implementation of VAT would result in inflation, he urged the state governments not to implement the new tax regime.

"We will fight tooth and nail and never accept VAT. If our demand is not met, then it is going to be tough days ahead for the governments," he said, adding that the traders would hold demonstrations in all district headquarters on March 16.

The empowered committee of state finance ministers had on Monday categorically said VAT will be implemented from April 1, 2005, even if Uttar Pradesh does not fall in line.

However, the VAT committee chairman Asim Dasgupta said the new time-tested tax was not inflationary and state would stand to gain because large scale evasion would come down.

Once the state-level VAT is implemented, necessary record keeping would be required to get the credits for the tax paid at the earlier stage, according to VAT committee's White Paper.