Rubber dealers plan stir against Govt ruling

KOTTAYAM, AUG 17: Rubber dealers in the State have decided to keep their shops closed on Tuesday to protest against the Government denial o...

KOTTAYAM, AUG 17: Rubber dealers in the State have decided to keep their shops closed on Tuesday to protest against the Government denial of their plea for exemption from purchase tax.

Indian Rubber Dealers Federation president E T Varghese, secretary Jose Thayil among others pointed out, addressing mediapersons here last Saturday, that the growers would not be benefited on account of limiting the exemption of 11 per cent purchase tax solely to STC and Rubber Marketing Federation. At the same time, the dealers stand to lose a great deal.

Explaining their dis-advantage the Federation said due to the availability of exemption in tax on purchases from STC and Rubber Marketing Federation outside the State, the rubber companies would buy rubber from the dealers.

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Normally the dealers supply rubber to companies on a credit basis, which implies that companies make payment for the previous consignment only on receiving a fresh consignment.

Now with companies purchasing their requirements from STC or the Rubber Marketing Federation, they would lose out on a big revenue. Moreover, they elaborated, only largescale procurement by dealers would help remove substantial quantity of rubber from the market, else, the STC and the Rubber Marketing Federation stand to make clean profit from the present sales to the companies; with none of the benefits trickling down to the growers.