New Delhi, Retailers Association of India (RAI) on Friday called for lower taxes on people to generate demand and stimulate consumption, besides seeking low-cost financing, subsidies and benefits on land rates and necessities such as electricity for retailers ahead of Union Budget for FY25.
Retail trade in India accounts for around 10 per cent of the country's GDP and the sector is second only to agriculture in terms of number of people directly employed, RAI said in its pre-budget memorandum, highlighting areas that need attention to make the industry stronger.
"To ensure growth of the sector, the Union Budget for FY25 should focus on generating demand and stimulating consumption by offering benefits or concessions in the form of lower taxes," RAI said.
It will boost overall consumer sentiment and benefit the retail sector, he said, adding that consumption equals development and the "tax benefits and relief for individual taxpayers will increase monthly disposable income and support consumption."
Additionally, the budget should outline supportive policies, simplified regulations, skill development and simple goods and services tax (GST) norms to help the development of the retail industry, the RAI said.
Calling for low-cost financing for retailers, the industry body said: "There is a need to offer lower interest rates to retailers through the special announcement in the Budget to ensure easier financing for retail businesses."
He also called on the government to consider the food and beverage retail sector as an essential service, saying "subsidies and benefits should be given to land rates and other necessities such as electricity."
The RAI also said there is a need to expedite the formulation and implementation of a 'National Retail Policy' to enable ease of doing business and "such a step would provide a substantial boost to the retail sector."
Stating that benefits for MSMEs trading in retail and wholesale are limited to priority sector lending, the RAI also recommended that retail and wholesale traders should be entitled to all benefits available to other MSMEs.
Further, the retailers' body asked the Center to encourage and incentivize states to adopt the 'Model Establishments and Shops (Regulation of Employment and Conditions of Services) Act, 2016, which allows states to opt to maintain shops and other similar establishments open 24 hours a day, 7 days a week, all year round.
Retail trade in India accounts for around 10 per cent of the country's GDP and the sector is second only to agriculture in terms of number of people directly employed, RAI said in its pre-budget memorandum, highlighting areas that need attention to make the industry stronger.
"To ensure growth of the sector, the Union Budget for FY25 should focus on generating demand and stimulating consumption by offering benefits or concessions in the form of lower taxes," RAI said.
It will boost overall consumer sentiment and benefit the retail sector, he said, adding that consumption equals development and the "tax benefits and relief for individual taxpayers will increase monthly disposable income and support consumption."
Additionally, the budget should outline supportive policies, simplified regulations, skill development and simple goods and services tax (GST) norms to help the development of the retail industry, the RAI said.
Calling for low-cost financing for retailers, the industry body said: "There is a need to offer lower interest rates to retailers through the special announcement in the Budget to ensure easier financing for retail businesses."
He also called on the government to consider the food and beverage retail sector as an essential service, saying "subsidies and benefits should be given to land rates and other necessities such as electricity."
The RAI also said there is a need to expedite the formulation and implementation of a 'National Retail Policy' to enable ease of doing business and "such a step would provide a substantial boost to the retail sector."
Stating that benefits for MSMEs trading in retail and wholesale are limited to priority sector lending, the RAI also recommended that retail and wholesale traders should be entitled to all benefits available to other MSMEs.
Further, the retailers' body asked the Center to encourage and incentivize states to adopt the 'Model Establishments and Shops (Regulation of Employment and Conditions of Services) Act, 2016, which allows states to opt to maintain shops and other similar establishments open 24 hours a day, 7 days a week, all year round.
