The Kerala Cement Dealers Association has decided to stop the sale of cement in the State from February 1 in protest against the notice for commercial tax of Rs.30 crore clamped on the dealers.
Association president M.R. Francis in a statement here on Friday said that the notice for tax was clamped on the dealers due to the confusion created while implementing Value Added Tax (VAT) from April 1, 2005.
The tax was demanded on the credit notice issued by the cement companies to the dealers. This tax had to be paid by the companies, not the dealers, Mr. Francis said.
He urged the Government to exempt dealers from the responsibility of paying the tax and charge it from the companies.