Hawkers,low-income traders not under LBT purview: CM

Chavan,while appealing to traders to withdraw their strike,said,“The high-powered committee will address their concerns and take necessary steps.” However,he dismissed their demand for total rollback of LBT.

Maharashtra Pradesh Congress Committee (MPCC) chief Manikrao Thakre led a party delegation to discuss LBT with Chavan. Party officials,including MLAs/general secretaries and other office bearers,said,“Traders fear the act will become another hurdle in conducting their regular business.”

The delegation also asked why the government was enforcing LBT when Value Added Tax was already in place.

However,Chavan said the Act was not being perceived correctly due to opposition parties misleading people. “The party should take the government’s message to the people effectively to dispel the false propaganda,” he said.

On Sunday,traders partially withdrew their protest and returned to business in Mumbai,Nagpur,Thane and Aurangabad. However,they said if LBT was not rolled back by May 15,they would again go on strike from May 16.

Congress and NCP coordination committee which will discuss ways to resolve the LBT crisis is likely to meet Monday.

Chavan,ruling out VAT as replacement for octroi,explained why LBT was being enforced. “Octroi was imposed on goods entering the municipal corporation area limits in cities. It was pertinent that traders who ran business in cities within these municipal corporation limits were made to pay the tax.”

According to Chavan,if the government were to impose surcharge on VAT,60 per cent of the people in rural Maharashtra would have to pay for the goods consumed in urban limits. “Why should rural areas pay for urban?” he said.

Chavan said in municipal areas where LBT was implemented,the results were excellent. It helped in increasing the revenue earning by almost 150 to 300 per cent in some municipal corporations,he said. Of the total 19 municipal corporations,only four were protesting LBT,Chavan said.

Respite till Akshay Tritiya

Federation of Associations of Maharashta (FAM),representing 750 trade associations of Maharashtra,is continuing the agitation against LBT. Most of the wholesale and semi-wholesale markets are expected to remain closed,said a member. However,there is some respite for citizens. “FAM has temporarily withdrawn the bandh for retailers dealing in essential commodities for three days on account of Akshaya Tritiya. FAM has requested its retail trade organisations to keep their shops open on Monday and Tuesday. The shops will be closed from May 15,” said Ashok Garg,president,Darukhana Iron Steel and Scrap Merchants Association.