PONDICHERRY

FEB 3 2002

The Association of Hotel Owners in Pondicherry, which has called for a bandh on February 5 to protest the imposition of eight per cent sales tax on cooked food sold by hotels, restaurants and sweet stalls from February 1, has postponed the agitation following an assurance from the Chief Minister that he would consider their plea.

A joint communication from the vice-president of the association, A. S. Mohammed Nizam, and secretary, S Balu, said here today the bandh had been suspended after the PCC leader, V Narayanasamy, assured that a formal consultation with Chief Minister would be held on the issue.

The AIADMK MLA, A Anbalagan, has termed the levy unjustified and said it would hit the business in the Union Territory.

Mr. Anbalagan told newsmen that more number of essential commodities had now been brought under the uniform sales tax, and it was surprising that the PCC leader, V. Narayanasamy, who was protesting the same in the past, was now maintaining silence even as hotel products were subject to a heavy tax under the Congress regime.

It was reported in a section of the press that Pondicherry was likely to be the venue for talks between the LTTE and the Government, he said and added that the Chief Minister should protest such move.