FAM has also urged the government not to tax the goods, which were tax-free till March 31, 2010.
Opposing the one per cent hike in VAT from the earlier 4 per cent, traders' body, the Federation of Associations af Maharashtra (FAM), today said that it plans to go on a ten-day mass 'dharna' if the State government doesn't roll-back the increase in tax.
FAM has also urged the government not to tax the goods, which were tax-free till March 31, 2010.
"The hike (in VAT) is irrational...if the government does not take any step to roll-back the hike, then traders across the state will go on a ten-day dharna from tomorrow. If the government still does not respond, then they will go on an indefinite strike." FAM's president, Mohan Gurnani, told reporters here.
If government keeps on increasing tax then a day will come when all industries in the state will shift to neighbouring states," Gurnani said.
He cited the examples of pharma players who were now setting up industries in Goa and the textile industry which has completely shifted to Surat in Gujarat.
The government should also remove the 5 per cent tax on edible oils and medicines in line with agri produces, Gurnani said.
FAM also demanded a further increase in the turnover limit for getting tax audit to Rs 100 lakh. The state government in its budget had increased the limit to Rs 60-lakh from Rs 40-lakh.
The body further demanded that no changes should be made in the state's VAT Act till the introduction of the Goods and Services Tax (GST).
The implementation of GST will lead to the abolition of taxes such as octroi, central sales tax, state level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity and taxes on transportation of goods and services.
It will also facilitate seamless credit across the entire supply-chain and across all states under a common tax
base.
The Centre, which was planning to implement the GST from April 1, has deferred its plan following differences in states on certain issues.
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