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PM refuses to withdraw sales tax

Prime Minister Inder Kumar Gujral late on Thursday night expressed his inability to withdraw the five per cent service tax imposed on the trade and industry sector, saying such a ''major tax concession is not not possible at this juncture.''

Addressing a gathering of trade and industry organised by Jalandhar Chamber of Commerce and Industry in Jalandhar, he said their demand for withdrawal of the service tax on them could be considered only at the time of next budget.

Regarding their second major demand for free interstate movement of raw materials in the country, the prime minister said, ''India is a federal country and hence the Centre cannot accept such a demand unilaterally.'' The concerned states would have to be consulted, he added.

However, Gujral asked the traders to send him an advance memorandum regarding their remaining demands, several of which were listed in a long memorandum given to him by Chamber Convenor Avnish Arora. He invited a trade and industry delegation to Delhi to discuss those demands.

Punjab Chief Minister Parkash Singh Badal was asked about his promise to the trade and industry sector's demand to abolish octroi as promised by the Akali Dal-Bharatiya Janata Party coalition at the time of assembly elections in Punjab. He replied, "I have to find an alternate source'' for running the municipal corporations and committees before accepting such a proposal.

He sought some more time from the trade and industry representatives, adding a cabinet subcommittee was already seized of the matter. He asked them to bear with his government and let it rule for five years and promised to fulfill their demands, adding, ''We are better than our predecessor.''

On the their demand concerning sales tax and Punjab State Electricity Board, the chief minister threw down the gauntlet at the business community, asking them to promise him 15 to 16 per cent annual increase in the sales tax for him to end the ''inspectors raj''.

As an alternative, he offered to set up a five-member committee comprising of three representatives of the trade and industry and two of the government to check evasion of sales tax and power theft.

Badal said if either of the proposals appealed to the trade and industry, they should say so and he would implement them.

Badal also challenged the trade and industry representatives to prove he if had over demanded a paise from them and if it was proved he would quit and immediately offer his resignation to the prime minister.

UNI