Traders across the country have decided to intensify their agitation against the proposed implementation of the value-added tax, even as the empowered committee of state finance ministers announced a new deadline of June 1 for the new regime.

A delegation of the VAT Action Committee, a traders organisation against the proposed regime, led by Minister of State for Labour Vijay Goel also met Prime Minister Atal Bihari Vajpayee to seek his intervention to modify harsh provisions of the proposed value-added tax system and defer its implementation.

In a statement, the committee said that Vajpayee has assured to look into their demands but emphasised the need for carrying forward tax reforms.

Over 100,000 traders from 26 states on Tuesday participated in an 'anti-VAT rally' in the capital demanding withdrawal of the harsh laws.

Following a rally organised by Bharatiya Udyog Vyapar Mandal in New Delhi on Tuesday, representatives from trade associations across the country passed a resolution that the Centre and state governments should withdraw VAT immediately.

However the convenor of the empowered committee of state finance ministers Asim Dasgupta said he had not been approached by the traders, but said the doors were always open for any dialogue to clear misapprehensions.

Earlier speaking at the rally, Shyam Behari Mishra, president, BUVM and also Member of Parliament, said that 'traders would continue their agitation as June 1 has been announced as the new date of implementation of VAT.'

Mishra is part of the five-member committee formed by the Bharatiya Janata Party to look into the implications of the transition to VAT and take up the matter with Finance Minister Jaswant Singh, especially that on textiles, tobacco and sugar.

A resolution was also passed for continuing with charging additional excise duty in lieu of VAT.

Pointing out that most of the countries where VAT was implemented were either non federal, or were developed countries Mishra claimed that 'lowering of the tax will only increase the revenue collection.'

The rally saw trade union representatives from across the country voice their apprehensions against the VAT regime.

Satish Agrawal from Andhra Pradesh addressing the traders said that sales tax on cloth, tobacco and sugar will give way to inspector raj and will increase corruption.

A resolution against the move of central govt. move to enact new Rent Control Act in entire India was also adopted in the rally. In Chandigarh this Act has already been implemented. The association said that the law is one sided and should not be implemented.