Members of the Tamil Nadu Vanigar Sangankalin Peramaippu staged a protest in the city on Friday seeking withdrawal of the increase in Goods and Services Tax for food products.
The association wanted the State government to review levy of market cess on agricultural produce. Its president A.M. Vikramaraja said the increase in GST for pre-packaged and labelled food products would affect commoners and retail traders.
While the FSSAI Act 2006 insisted that all food items must be packaged and sealed, the Centre said those items without packaging would not attract GST. The contradictory regulations would affect traders and the levy of 5% GST on essential goods would only lead to further rise in prices.
The State government must withdraw the 1% market cess as it would affect farmers and traders. Nearly 90% of the products are brought from other States. The traders’ body would intensify its agitation after discussions at the meeting in Madhya Pradesh on July 26, he added.
