Bhubaneswar, March 25: The prices of pulses and other essential commodities are expected to climb with traders having threatened not to acquire them from outside the state from April 1 onwards.
The traders' association said that apart from pulses, it would also stop buying wheat, wheat products and sugar in protest against the state government not waiving the value added tax (VAT) from the essential commodities.
Odisha Byabasayi Mahasangha general secretary Sudhakar Panda said: "Despite our repeated pleas, the state government is not withdrawing VAT. A faulty tax structure exists in the state. There should be a uniform tax structure."
He said traders had to pay between 10 and 12 per cent tax on the essential commodities.
"While acquiring the commodities from outside the state, we bear the transport cost that amounts to nearly 7 per cent of our total costs. In addition to that, the traders also pay 5 per cent VAT on these products. The irony is that the state government is not even getting the entire amount of the tax levied on the essential commodities. In protest, we have decided to stop buying these products from April 1."
At present, the state government is getting nearly Rs 14,500 as tax. The traders are of the view that if the state government brings in a uniform tax structure, it could earn revenue to the tune of Rs 18,000 crore.
"There will be no evasion of taxes," said Panda.
Urging the traders to co-operate with the state government on this issue, food and civil supplies minister Sanjay Das Burma said: "The state government is of the view that there should be a uniform VAT rate on pulses, wheat and wheat products for all states. We are meeting the traders' associations regarding this. I hope we will be able to come to a decision to end the stalemate."
The Centre is also thinking of bringing in a uniform tax structure. Sources said the state government was waiting for the Centre's move before it took a decision on this.