Differences on VAT, Cabinet defers stand

HYDERABAD: Textile merchants' agitation against imposition of 5 per cent VAT came generated some heat at Monday's state cabinet meeting where arguments took place between ministers. The chief minister, however, did not take any decision on the demand of the clothiers. The debate was triggered by Sailajanath's remark that he found nothing wrong with imposition of vallue added tax (VAT) on big merchants.That was one way of mobilising resources which could be used for welfare progarmmes, he said. His stance was opposed by others. Danam Nagender said imposition of VAT was unjust and hit the merchants below the belt."How can traders do business if the state goes on imposing taxes on them?" he asked. P Viswaroop too voiced more or less the same opinion.The chief minister asked the ministers to be well-prepared for the budget session of the Assembly which will commence in the second week of February. He wanted reviews done in each district and problems that had the potential to blow up in the face of the government be addressed immediately