The traders in Delhi on Tuesday threatened to shift the wholesale market to Uttar Pradesh and Rajasthan after the value added tax is implemented from April 1.
They are planning a car rally on Wednesday to protest against the new regime. A delegation led by former Union minister and Confederation of All India Traders chairman Vijay Goel called on Delhi Chief Minister Sheila Dikshit to demand that VAT be deferred.
Praveen Khandelwal, CAIT secretary general, said talks with the Uttar Pradesh government were under way to shift wholesale trade to Ghaziabad and Noida. They will meet Chief Minister Mulayam Singh soon.
They also plan to approach the Rajasthan government for help.
Reacting to the Delhi government's decision, Goel said, "While under the sales tax regime, goods are taxed at 4 per cent and 8 per cent rates and about 100 items are under the exempted category, tax rates in VAT states will be at 4 and 12.5 per cent with only 46 items under the exempted category."