This story first appeared at The Patna Daily http://bit.ly/1o3h1dn
The state which just crossed over the assembly election has been witnessing agitation all around. And, most interestingly, none of them are for political reasons. The state witnessed the closure of shops frequently, this fortnight against the coercive revenue generating measures of the government. It is well known that dept. From commercial taxes in Bihar came under immense pressure to search ways to make a hopping Rs 4,000 crores annually, which it would lose as Nitish Kumar makes Bihar a liquor free state from April 1st.
Khetan Super Market, the textile center of Bihar, witness Gandhigiri on Tuesday. Some 300 odd textile traders wearing typical Gandhian cap having rose in hand, opposed the VAT on clothes. It is well known that textile traders are on agitation against the imposition of VAT on clothes imposed for the first time in Independent India.
Some 100 meters away Homeopathic medicine shop owners assembled & chanted slogans against the govt. They went on strike on 4th of February when a team of drug controller raided and sealed 3 shops in Subzibagh area inappropriately. In an aftermath, hundreds of shop owners voluntarily remained close their shops and joined the agitation at Temple building, next to Birla Mandir at Sabjibagh. It is unethical to raid the shops and sealed them without any set of rules, says Dawood Ali, President, Bihar Rajya Homeopathic Sangh. Anyhow the pressure worked and govt had to release the seal later on Tuesday. But a six day closure has approximately hampered a business of more than a crore rupees.
On Tuesday alone, Exhibition Road-Bhattacharya Road crossing, the busiest commercial space of the city were deserted. Some 300 odd shops were closed and sat on dharna demanding rollback of the increased VAT. Across the city more than ten thousand automobile parts' traders went on one-day strike against increasing VAT rates on spare parts. Though the agitation was limited to the traders of two-and-three wheelers the impact was felt strongly as the capital alone witness 3.32 lakh two wheelers and 1.10 lakh three wheelers plying on city roads.
Indian Chamber of Commerce has a very clear reaction on the issue of coercive method of generating revenue.“After agriculture Bihar’s economy depends on trade. The VAT rates in Bihar need to be lowest in the country so that at least we could be converted into a trading hub,” says Kamal Shahi, Resident Director, ICC. Increment in VAT rates will lead to a sudden decrease in trade volume, margins and profitability. Furthermore, non-registered traders would bring mail illegally from neighboring states like W. Bengal & Jharkhand where VAT is exempted on clothes and other products warrants just 5%, he added.
“The govt should control wasteful non plan expenditure first. NitishJi needs to understand the basic difference between tax effort by govt and capacity of the people and stakeholder to pay it. Otherwise his financial choreography will lead the state in financial mess”, rebukes Satyajit Singh, Chairman, PHD Chamber of Commerce & Industries(Bihar).
Amit Sinha is a bilingual columnist. He can be contacted at facebook.amit
