They have also asked for removal of all checkpoints they stop at while transporting goods.
The transporters' list of grievances included government reneging on its commitment to exempt them from the burden of collecting service tax.
This can lead to further disruption of business, with traders across the country already on a strike, protesting against VAT.
Gurinder Pal Singh, president of the largest truck operators' association of India - All India Motor Transport Congress complained that transporters, in addition to VAT, would continue to pay octroi, toll tax and cross-state entry charges.
"This is when the government had promised to phase out all indirect taxes before introducing VAT," Singh said.
He added that VAT could be a major headache for transporters as there was no road map for abolition of multiple checkpoints that they had to deal with while transporting goods.
The crisis over VAT: Complete coverage
With such checkpoints still in place, Singh said the introduction of VAT would lead to more paper work. With transporters being responsible for VAT paid by the purchaser or seller of goods, there could be delays if papers were not in order, he added.
"Any snag in sales and purchase papers would result in transporters being made to pay heavy penalties," Singh said.
AIMTC General Secretary Tapan Jha added that even though diesel was an input for their operations, credit against purchase of diesel could not be used as a set-off against service tax paid by them.
Adding to their woes was the fact that the government, after entering into an agreement with transporters over the issue of collection of service tax, had shifted the responsibility of depositing service tax of partnership firms to transporters and truck operators, Singh said.
"If our complaints are not addressed, we would be forced to go on a strike," Singh warned. The threat of another strike comes eight months after transporters all over the country struck work in August 2004 to protest against service tax.
