Retail traders protest against Maharashtra's local body tax

Retail traders from Mumbai, Thane and Nagpur joined the indefinite strike on Monday in protest against imposition of the local body tax (LBT). Wholesale and semi-wholesale markets as well as retail shops downed shutters and will remain closed indefinitely, Federation of Association of Maharashtra (FAM) President Mohan Gurnani told PTI.

FAM which represents 750 trade associations in Maharashtra has been protesting against the imposition of LBT since last fortnight. The strike has affected business, of which Mumbai city alone generates a daily turnover of Rs 60,000 crore, Gurnani said, adding that business worth Rs 9 lakh crore was lost due to strike during the last 15 days.

To resolve the issue, an FAM delegation today sought support of the ruling NCP and met Maharashtra Deputy Chief Minister Ajit Pawar at the Sachivalaya today. After a cordial and constructive discussion, Pawar agreed to write to Chief Minister Prithviraj Chawan to resolve the LBT issue, FAM said.

FAM added that it has also sought BJP leader Nitin Gadkari's support, even as Congress MPs from Maharashtra sought Congress president Sonia Gandhi's intervention to resolve the issue.

Meanwhile, FAM has already issued a 72-hours ultimatum which ends on the evening of May 8 to resolve the LBT issue, failing which the traders may intensify their agitation.

LBT came into effect from April 1 in Kolhapur, Sholapur and Vasai-Virar Municipal areas. "The traders are always ready to pay legitimate taxes but we do not want additional taxation departments. We demand abolition of the LBT Act and octroi as well as adoption of the Gujarat taxation model," Gurnani said.