12 April 2007
(PTI): Traders in Kerala on Thursday decided not to sell cigarettes in the state from April 16 as tobacco-manufacturing companies were 'not prepared' to pay the value-added tax for the products.
A decision to this effect was taken in Kozhikode at a meeting of the Vyapari Vyavasayi Ekopana Samithi, the leading traders body in Kerala, as 'companies, manufacturing tobacco products, are not prepared to bear the 12.5 per cent VAT,' levied on them.
"The government in its April 1 order has said that the companies should also include the tax before fixing the price of the products and we also welcomed it," Samithi state president T Naseeruddin said.
He, however, said that since the companies were not adhering to the decision, the traders would be put to severe hardship as they would not benefit from selling cigarettes at the current price.
The Samithi has, therefore, decided not to sell cigarettes in the state from April 16, he added.
Source: PTI
Online at: http://www.rediff.com/money/2007/apr/12cig.htm