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Bloc Proposes More Taxes On Farm Produce


By sachiv1, Section News
Posted on Fri Jun 08, 2007 at 04:06:52 AM EST

The Forward Bloc has brought all markets in Kolkata under the West Bengal Regulated Markets Act to put up the biggest hurdle before all private majors, including Reliance Industries Ltd, seeking to enter the farm-to-table retail business.

The Forward Bloc controlled marketing department has already issued the government order, and the formal gazette notification is expected shortly. The Regulated Markets Act will impose its fees and regulations on all retail outlets in Kolkata dealing with agricultural produce in any form commodity, packaged or processed.

Chairman of the West Bengal State Marketing Board Naren Chatterjee said the licence fees and tax would be imposed after the gazette notification. "Tax will have to be paid if agricultural produce in any form changes hands," Chatterjee said.

Mayor Bikash Ranjan Bhattacharya, who wants private parties to redevelop all 20 civic markets here, said the decision did not seem to be well thought out. "This will hurt small traders since everyone will have to pay the licence fees and taxes," he said. "Small-time traders, who bring in farm produce worth Rs 30 to Rs 50 to sell here, will suffer the most. How will they pay the tax?"

The Forward Bloc's flurry of activity against the entry of private retailers in farm produce was prompted by the KMC's announcement last month that Reliance had emerged the highest bidder in an open tender for re-developing the Park Circus market in return for space to set up its own outlet.

Chief Minister Buddhadeb Bhattacharjee had pointed out there is no law to prevent Reliance from entering the retail business. In fact, last year the government had cleared the entry of German wholesale major Metro AG for its "cash and carry" business aimed at institutional buyers, shop-owners and the like.

The marketing department's decision has also upset the trading community, which had so far supported the Forward Bloc's protests against big players in retail. Traders pointed out that anybody bringing farm produce into Kolkata already pays tax under the Regulated Markets Act. Mahesh Singhania of the Federation of West Bengal Traders Association said the community would oppose the Bloc's move. "Kolkata does not produce any agricultural commodity. Whatever comes in has already been taxed once. This will mean double taxation. Posta, Asia's largest market in commodities, will also be affected," Singhania said.

(Source - Indian Express, 06/08/07)

< Sector 5 Civic Body Asks Govt To Revise Tax Structure | Metro Goes East, Seeks Help From Japan For The Next Stretch >
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