Bangalore: Trade and industry in Karnataka on June 11 began a daylong bandh to put pressure on government to withdraw an ordinance increasing sales tax on 201 commodities, a step they called "retrogade".

Initial reports said trade was adversely affected, particularly in the business nerve centres of Bangalore where commercial establishments downed their shutters.

Trade and industry related activities in other parts of the state were also hit.

Protesting against the ordinance, the traders have also planned to take out a procession later in the day.

Federation of Karnataka chambers of commerce and industry (FKCCI) president K N Jayalingappa said immediate result of the ordinance has been to make Karnataka the highest taxed state in the country, not to speak of the "serious consequences" it would have on the business in the state.

The ordinance, effective from June 1, 2003, has increased the sales tax by one per cent on 201 commodities and imposed a fresh non-collectable additional tax of one per cent on almost all the commodities, works contract and leasing, FKCCI said.

PTI