UP channel protests VAT increment

Protesting the state government's decision to increase VAT from four to 12.5
percent and reintroduce the two percent entry tax on IT products, channel
partners and solution providers across the state called for a two-day strike on
September 22 and 23. All IT shops across the state remained closed for the two
days.

Arun Bhargava, President, Kanpur Computer Dealers Association informed that
the channel will not resume their sales operations till the end of this week.
Dharmendra Gupta of Lucknow-based Nesco shared that as of today the market has
still not opened and Uttar Pradesh Computer Dealer's Welfare Association (UPCDWA)
has decided to go on an indefinite strike. Members informed that UPCDWA will
also join hands with the association of other commodities to protest
the government's decision.

Products on which government has increased VAT are IT goods, telephones, CDs,
DVDs, mobile phones, etc. UPCDWA is in dialogues with the Secretary of
Commercial Tax Department of UP in Lucknow to roll back the increased VAT
proposal.

"We are in dialogue with the commercial tax officials for the issue. The
entire channel community in Uttar Pradesh has joined hands against the
unacceptable VAT increment and we are trying our best to ensure that it is not
implemented," said Rohit Kohli, President, UPCDWA.

VS Pandey, Principal Secretary to Chief Minister Mayawati, said to a media
group, that all the items for which VAT has been hiked or an entry tax has been
reintroduced are usually misused by the rich.