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Retailers Association of India recommends lower taxes to boost the consumer sentiment

Retailers Association of India has recommended the central government that the Union Budget for FY 23–24 should focus on generating demand and spurring consumption by offering benefits or concessions in the form of lower taxes.

The association said that it will boost the overall consumer sentiment and benefit the retail sector. Tax benefits and relief to individual tax payers will increase the monthly disposable income and support consumption.

“The budget must prioritize growth-oriented measures to stimulate demand and consumption. The budget should outline supportive policies, simplified regulations, skill development and simple goods and services tax (GST) norms to aid in the development of the retail industry,” said RAI.

Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The Indian retail market is estimated to be worth $1 trillion and is expected to reach $2 trillion by 2032. India is one of the fastest growing retail markets in the world.

“There is a need to provide lower interest rate to the retailers through the special announcement in the budget to assure easier financing for the Retail businesses. The government should allocate a special fund and formulate a special trader finance scheme with SIDBI to help millions of independent retailers across the nation by declaring low-cost loans and relaxing some industry guidelines,” RAI has said.

RAI has also requested to consider retail as an essential service and F&B retail sector needs to be considered as a priority and an essential service.

Jan 10,2024

Source: Economic Times