Protestors Threaten Indefinite Strike If India Implements VAT

by Mary Swire, Tax-News.com, Hong Kong

10 April 2003

The anti-VAT movement in India stepped up a gear this week when traders across the length and breadth of the country staged protests in the capital, and threatened an indefinite period of strike activity if the government decides to implement the tax.

Representatives of the traders allege that the controversial tax will only benefit multinational companies, whilst leaving millions of Indians jobless. They also warn that the administrators of the new tax will be open to corruption and the formation of an "inspector raj" which will ultimately deprive the central government of income from the tax.

The more extreme critics of the tax have informed the government that no dialogue will take place between the authorities and the representatives of the traders until the "anti-trader" tax is abolished, according to a report in Indian national newspaper, The Hindu.

Meanwhile, a majority of Indian states have agreed to implement the VAT legislation on June 1 after an announcement by the chief of a finance ministers' panel on Tuesday.

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