CAIT demands FDI-backed e-commerce platform ban
today Nov 14, 2019
The Confederation of All India Traders’ Gujarat division demanded a nationwide ban on online trade by foreign direct investment-backed e-commerce platforms as part of its pan-India protest on November 13.
CAIT is currently organising protests across India against FDI-backed e-commerce businesses, with a focus on Flipkart and Amazon. The traders’ body submitted a memorandum of understanding to the parliamentarians of Navsari and Surat demanding the ban of foreign e-trade, TNN reported. The organisation believes that the practice is harming Indian traders and that foreign-owned businesses have consistently flouted FDI regulations, especially concerning what it sees as predatory pricing.
“By selling at cheap rates, e-comm companies are also making retailers across India suffer losses,” said Pramod Bhagat, part of the MoU submission team, as reported by TNN. “We have demand immediate ban of e-comm portals across the country in the wider interest of the vast base of retailers.”
CAIT also asked for an independent task force to be set up which would investigate its claims that Flipkart and Amazon have violated FDI regulations. The team would include tax experts, retail experts, and economists.
The organisation has also alleged that FDI-backed e-commerce businesses are causing Goods and Services Tax and Income Tax revenue losses to the government exchequer due to their allegedly illegal businesses practices. CAIT plans to continue its pan-India protest into 2020.
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