Retailer’s Association Body Prescribes Tax Reduction To Boost Consumption & Growth

New Delhi, Jun 21 (KNN) The Retailers Association of India (RAI) has presented a comprehensive set of recommendations for the upcoming Union Budget 2023-24, aimed to boost the retail sector.

The RAI's pre-budget memorandum focuses on several critical areas. It calls for measures to boost consumption through lower taxes and concessions, increasing disposable income to spur consumer spending.

The association also advocates for low-cost financing options for retailers, including a proposed special trader finance scheme with SIDBI. Digital payments are emphasised, with suggestions for subsidised MDR on debit card transactions to promote wider adoption.

The RAI is pushing for F&B retail to be recognised as an essential service, which would come with benefits on land rates and utilities.

Other key recommendations include expediting the National Retail Policy to facilitate ease of doing business, extending all MSME advantages to retail traders, and subsidising Point of Sale machines to help small retailers digitise operations.

The industry body also encourages more states to adopt the Model Shops and Establishments Act, allowing for 24/7 operations, and proposes reintroducing the EPCG scheme for retail sector infrastructure modernization.

With the retail sector employing around 50 million people, these proposals aim to unleash the industry's growth potential and contribute significantly to India's economic aspirations.

As the budget announcement nears, the government's response to these suggestions could shape the future of this vital economic sector.

(KNN Bureau)