Special Correspondent

MANGALORE: This coastal city will play host to the proposed formation of the Confederation of South India Chambers of Commerce and Industry and Trade Bodies.

This was resolved at a conference held here on Sunday, which was attended by representatives of chambers of commerce and industries of Karnataka, Kerala, Tamil Nadu and Andhra Pradesh. The conference was convened by the Kanara Chamber of Commerce and Industry.

Outlining the conditions that necessitated the formation of the organisation, which will be the second largest trade related body after the federation of Indian Chambers of Commerce and Industry, KCCI president A. Srinivas Rao told The Hindu that service tax on users of road transport, mainly on the receivers of goods, had become the moot point for floating the organisation as the Government and the FICCI had not come to the rescue of traders in pressurising the Finance Ministry in cutting down the effects of service tax on road transport users. Mr. Rao said the entire burden of the service tax on road transport was passed on to the trading community.

The Confederation will get the support and membership of 46 trade organisations, including the chambers of commerce and industries in Karnataka, Kerala, Andhra Pradesh, Tamil Nadu and Goa, he said.

He said the Federation of the Karnataka Chambers of Commerce and Industries was represented by its president S. Babu, while senior trade body leaders such as Shantilal Pandey from Tamil Nadu, C.P. Jain from Kochi, Poornachandra Rao from Guntur have supported the move. The Bangalore Chamber of Industry and Commerce has also sent in its consent for the formation of the Confederation Mr. Rao claimed.

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