Traders protest at a rally in Bhubaneswar on Wednesday. Picture by Sanjib Mukherjee

Bhubaneswar, June 8: Textile shops in capital city remained closed for the second consecutive day today to protest against the state government’s imposition of four per cent value added tax (VAT). The traders threatened to shut shops indefinitely if their demands were not met.

Around 3,000 traders took out a rally from Master Canteen Square to Lower PMG and also held a meeting to press for their demands. Later, a five-member delegation of All-Orissa Textile Merchants’ Association and Orissa Garments’ Association submitted a memorandum to the chief minister with their list of demands.

“We have no other option but to protest as all these things fall in the category of essential commodities,” said Mohanlal Jain, general secretary of the All-Orissa Textile Merchants’ Association and president of the Cuttack Textile Owners’ Association.

Jain also said they had a discussion with chief minister’s principal secretary Aditya Prasad Padhi. “We discussed the issues with him for about half an hour. He assured to take up the issues with the chief minister this evening. We hope a decision would immediately be taken in our favour,” said Jain.

Rabindra Nath Mohapatro, president of the All-Orissa Textile Merchants’ Association, said they were hopeful of a favourable decision.

He said the traders had submitted a memorandum to Naveen on May 19 and a meeting was held with the principal finance secretary on May 21. On request from the government, the traders had postponed their strike called on May 24 and 25.

“Since May 3, when VAT on textile fabrics and sugar was enforced, we have been protesting against the decision. More than a month has passed, but the government was yet to take steps, though we were given assurances every time. If no action is taken, we will decide on our future course of action,” said Mohapatro.

He said if required traders would shut shops indefinitely. The traders claimed that Orissa was the only state to have imposed VAT on textile and sugar. Although Rajasthan and Jharkhand had imposed four per cent VAT on sugar and textile, they withdrew it following protests.

Unlike those in neighbouring states, the traders said they were paying one and two per cent entry tax for importing sugar and textile goods. “Additional four per cent VAT will increase the tax burden on us and make commodities costlier in the state,” a trader said.