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Thiruvananthapuram: Traders in Kerala have decided not to sell cigarettes from Monday in protest against a new Value Added Tax (VAT) of 12.5 per cent imposed by the state government.
The state government has said the extra tax, which comes into force from the new fiscal, will have to be borne by traders, not the tobacco companies.
However, traders don't agree.
The Kerala Vyapari Vyvasayi Ekopana Samithi, a leading traders' body, has said that if tobacco companies don't bear the burden of the additional tax, traders will incur losses.
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