Maharashtra traders launch stir against new tax; Mumbai not hit

Traders across Maharashtra today launched a two-day strike against the new Local Body Tax (LBT) imposed by the state to replace Octroi duties.

The strike is supported by as many as 750 traders' associations, who say the new tax will increase corruption and will be used by officials to harass traders.

The strike did not however have much impact in Mumbai, where shops and establishments were functioning normally.

The LBT was introduced in some cities in the state from 1 April after abolishing Octroi, a levy charged on goods entering a town or city.

The state government has offered to relax the tax for the small traders, but says it cannot be done away with entirely as this will pinch the revenues of municipal corporations and councils.

The traders have threatened to start an indefinite agitation next month if their talks with the government fail.

Earlier this month, an indefinite shutdown by traders in Pune was called off after a week, after Chief Minister Prithviraj Chavan met their representatives and persuaded them to call it off.