Dry fruit traders across Maharashtra have started an agitation against the levying of 12.5 per cent Value Added Tax (VAT) by the state government.

On March 30, the Maharashtra Government had issued a notification by which it increased VAT rate to 12.5 per cent from 5 per cent on dry fruits, timber and laminated particles.

"It is unanimously decided by the delegates of various major dry fruits trade associations to protest against the State Government's recent decision to impose 12.5 per cent VAT on dry fruits," Federation of Associations of Maharashtra's President, Mohan Gurnani, told reporters here today.

"We demand withdrawal of the VAT increase on dry fruits without disturbing the present rate of tax," Gurnani said.

The Association also said that it could go on a strike to register its protest against the State Government's action to increase the rates of VAT on dry fruits, he said.

"The state government is under the wrong impression that it will earn more revenue through heavy taxation on items like dry-fruits," Gurnani said.

The total turnover of dry fruits trade in Mumbai and Maharashtra is Rs 605-crore. With the implementation of the new VAT rate, the trade will shift to other states and turnover of dry fruits trade will dwindle to Rs 150-crore, he said.