Over 5000 bakeries in Maharashtra on Friday went on an indefinite strike in protest against the four per cent sales tax levied in the recent state budget on wheat flour-maida and atta--the raw materials used by bakeries.
Mr K P Irani, President of the Indian Bakers Association said he state government's decision to impose a four per cent sales tax on wheat was unjustified and would mean a 'fatal' blow to the industry. At present the rate of bun breads cost about 75 paise per piece against 50 paise, before the strike, and other related items like biscuits and cakes were also costlier in city and suburbs.
About 3,000 traders and bakery products shop owners have downed their shutters in protest against the tax and would have to bear huge losses per day. Mr Irani said a similar strike was observed nearly 20 years back, when Union Finance Minister S B Chauhan imposed a similar central excise on wheat and related products, which was withdrawn after one and a half day. Even in 1998, a decision by the Maharashtra to tax wheat and besan related products was reverted after vehement resistance by the industry.
Bureau Report