Jan. 5: A shortage of essential items loomed as truck operators began their indefinite strike from today and the Centre retaliated with threats to revoke their permits.

However, late tonight, the finance ministry partially gave in to the truckers’ demand to exempt them from service tax for services given by sub-contractors.

Truckers had been demanding total abolition of the service tax. The department of revenue’s order, however, specified that it had exempt from service tax eight services, including clearing and forwarding agent service, manpower recruitment or supply service, cargo handling service and storage and warehousing service.

The All India Motor Transport Congress (AIMTC), which has called the strike to demand a cut of Rs 10 in diesel prices and other concessions, claimed the protest was successful.

The government cited reports by some expert agencies to argue that movement of goods “wasn’t affected much”.

Officials in Delhi said collections from highway toll plazas were normal. The situation could get worse, though, with LPG tankers in Tamil Nadu and Karnataka joining the strike.

The picture appeared better in the east. In Calcutta, operators said they would allow movement of trucks carrying perishable goods till January 7. “Transporters had stopped bookings but there was some unloading today. Movement of perishable goods like fish and vegetables has been relaxed till January 7,” S. Ghosh, the president of the Truck Owners’ Association of Bengal, said in Calcutta. Truckers in Bihar have decided to stay out of the strike, saying it would affect the state’s development.

Oil crackdown

The Centre today asked states to invoke the national security and essential services maintenance acts against oil PSU officers planning an indefinite strike from Wednesday for a hike.

“The strike has been declared illegal by the high court. The nation can’t afford (the) strike as it would cause hardship to citizens and cripple normal life,” petroleum minister Murli Deora said.