The traders of the city on Monday shut their shops in protest against the 5% VAT on raw masala (spices).
The Rajasthan Khadya Padarth Vyapar Sangh (RKPVS) claimed that masala traders in 247 mandis in the state kept their shops shut as a mark of protest against imposing 5% VAT.
RKPVS president Babulal Gupta said that till July 31, all the spices traders would keep their shops closed. The RKPVS would organize a general body meeting on July 31, in which it would take decision on their protest, if the government does not fulfill their demand.
The traders claimed that the decision to impose VAT on raw spices would give rise to prices and it will decrease employment opportunities and affect overall trade of raw spices in the state.
The traders pointed out that when there was no VAT on raw spices, the state's mandis (markets) saw impressive sale of raw spices as traders from neighbouring states including Madhya Pradesh, Uttar Pradesh, Haryana, Punjab, Gujarat and Delhi came to Rajasthan and purchased raw spice from the state's markets. Rajasthan is not a great producer of chilli, even though traders from other states come to buy chilli from the state.
The farmers also sold their crops in Rajasthan only and they did not have to pay huge amount on transportation to sale their produce in other states.