"We have called a complete trade bandh for 72 hours from March 30 to April 1 all over the country to oppose the VAT implementation," Bhartiya Udyog Vyapar Mandal National president Shyam Behari Mishra said on Wednesday.
Opposing the moves by states to switch over to VAT from April, he said BUVM was in favour of additional excise duties.
Earlier another lobby, Confederation of All India Traders, had threatened to launch an indefinite bandh if states went ahead with VAT implementation.
The crisis over VAT: Complete coverage
Mishra feared that VAT would result in price escalation to the tune of 10-15 per cent. However, VAT panel chairman Asim Dasgupta said the new tax was not inflationary and states would stand to gain because large scale evasion would come down.
"We will fight tooth and nail and never accept VAT. If our demand are not met, then it is going to be tough days ahead for the governments," he said, urging traders to launch non-cooperation by not paying taxes.
The empowered committee of state finance ministers had categorically said VAT will be implemented from April 1, 2005, even if Uttar Pradesh does not fall in line.
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.