UP channel protest VAT increment

LUCKNOW, INDIA: Protesting the state government's decision to increase VAT from four to 12.5 percent and reintroduce the two percent entry tax on IT products, channel partners and solution providers across the state called for a two-day strike on September 22 and 23. All IT shops across the state remained closed for the two days.

Arun Bhargava, President, Kanpur Computer Dealers Association informed that the channel will not resume their sales operations till the end of this week. Dharmendra Gupta of Lucknow-based Nesco shared that as of today the market has still not opened and Uttar Pradesh Computer Dealer's Welfare Association (UPCDWA) has decided to go on an indefinite strike.

Members informed that UPCDWA will also join hands with the association of other commodities to protest the government's decision.

Products on which government has increased VAT are IT goods, telephones, CDs, DVDs, wireless equipment and several other electronic gadgets, dry fruits, tea and mobile phones.

UPCDWA is in dialogues with the Secretary of Commercial Tax Department of UP in Lucknow to roll back the increased VAT proposal.

"We are in dialogue with the commercial tax officials for the issue. The entire channel community in Uttar Pradesh has joined hands against the unacceptable VAT increment and we are trying our best to ensure that it is not implemented," said Rohit Kohli, President, UPCDWA.

VS Pandey, Principal Secretary to Chief Minister Mayawati reported to a media group that all the items for which VAT has been hiked or an entry tax has been reintroduced are usually used by the rich. According to Pandey, “The additional tax on select items would mop up additional annual revenues of Rs 1,200 crore (Rs 12 billion).”