Traders claim new tax is too high, which will make products too expensive and hurt their businesses
Over 75 markets in the Capital will keep their shutters down on Friday protesting a number of rules and provisions under the new Goods and Services Tax (GST) to be implemented across the country from July 1. However, even as the traders have called for a nationwide ‘bandh’ on June 30, dealers kept their shops shut for three days starting June 27.
The Capital’s business hub, including Chandni Chowk, Sadar Bazar, Karol Bagh, Chawri Bazar, Kirti Nagar, Sarojini Nagar, Lajpat Nagar, Gandhi Nagar, and Kamla Nagar, will remain closed, too.
Of these, Chawri Bazar, Mori Gate, and Karol Bagh house the auto parts markets. RK Gupta, President, Auto-Parts Traders’ Association, said, “The new taxation system has too many formalities and is complicated. It will not allow traders to have a simple and free-flowing system, which will affect business adversely.”
He added that the excise tax on auto parts has been hiked to 28 per cent from the present 12.5 per cent, which is not fair for either the traders or the buyers.
“Such a hike in tax will make the product too costly for both the traders as well as the end user. Besides, computerisation will not be feasible for small-time traders. It will ruin the small fish and local dealers, who are neither tech-savvy nor can they hire people for the job,” said Gupta.
Akash Bajaj, who owns a store in the popular Kirti Nagar furniture market, too, was wary of the new policy and maintained that it is complicated and does not allow traders a free window for business.
“Small and big traders of over 20 states across the country will keep their shops shut. This is a movement against the anti-trader rules of the new taxation policy. We hope to convey our message to the government through the bandh,” said Vijay Prakash Jain, General Secretary, Bhartiya Udyog Vyapar Mandal.
Why the protests
Traders shutting shops for a day include wholesalers, retailers, small and medium enterprises, as well as those in unorganised trade.
Traders’ body maintains that there should not be more than 15 per cent tax on any item. Also, they are against the levying of taxes on foodgrains and cloth/garments.
Small and mid-level businesses will face difficulties in complying with the GST, as it is largely a technology driven taxation structure.
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