The government said on Wednesday that truck operations will not be covered under the proposed Value Added Tax regime, which is to replace varying sales tax system and does not apply on service providers.
"VAT is to replace varying sales tax systems across states. Truckers, who fall under the category of service providers, were never subject to sales tax and hence will be out of the purview of the new regime," Minister of State for Road Transport and Highways B C Khanduri told reporters in New Delhi.
Truckers are on a country-wide strike protesting against the proposed new tax regime and higher fuel costs. The strike, which entered the third day on Wednesday, has raised fears of shortages of essential commodities such as vegetables, fruits and milk.
Truckers' demands include putting an end to frequent hike in diesel prices, immunity from VAT, repeal of an order to scrap 15-year-old trucks and fixing of minimum freight rates.
Inviting the striking truckers for talks, Khanduri said All India Motor Transport Congress, the largest truckers' union with 2.7 million vehicles in its fold, has put people at great inconvenience on a non-issue.
AIMTC secretary general J M Saksena said the union would take its demand back if the government gives the undertaking on VAT in writing.
