UP dealers call off statewide strike

Lucknow : After a
week-long tussle with the state government, IT channel partners, along with
other dealers in UP finally called off the statewide strike. The decision to
call off the strike came after commercial tax officials agreed to reduce the
12.5 percent VAT the state government had raised on various items on September
19, to four percent. However, on products like TFTs, UPS and multimedia speakers
the 12.5 percent VAT would remain. The state government has also levied two
percent entry tax on all the products.

"We continued the strike for
seven days and lifted it only after the state government rolled back its
decision to hike VAT from four percent to 12.5 percent. However, the IT market
has suffered an estimated loss of Rs 30 crore due to the seven day strike,"
said Rohit Kohli, President, Uttar Pradesh Computer Dealer's Welfare
Association (UPCDWA).

Arun Bhargava, President of
Kanpur Computer Dealer's Association informed that though the government has
revoked the decision to increase VAT, it has announced that the increased VAT
would be applicable on certain IT products.

"The government's decision
to hike VAT on certain products will effect the IT market of the state and
besides being a festival season, no excitement is seen in the customer behavior," commented Bhargava.

KN Shukla from Lucknow-based
Login Uptech informed that now the channel as well as customers would have to
accept the increased price of products, and this would surely affect the sale of
IT goods, even during the festival season.

Opposing the state
government's decision to increase VAT from four percent to 12.5 percent and
reintroducing the entry tax of two percent on IT products, channel partners and
solution providers across the state had gone on an indefinite strike from
September 22. Though the strike was called off on September 29 the VAT increment
continues to exist on certain products.

Products on which government
has increased VAT were IT goods, telephones, CDs, DVDs, wireless equipment and
several other electronic gadgets, dry fruits, tea and mobile phones.