Retailers Association of India asks government for assistance and tax aid
The Retailers Association of India has asked the government to allow retailers a 90-day grace period on statutory dues, such as income tax, as Indian stores feel the effects of Covid-19.
The RAI requested the Department for Promotion of Industry and Internal Trade, the Prime Minister, and the Ministry of Finance to aid retailers, as malls go into lockdown amid coronavirus health concerns, ET Retail reported.
Many retailers are already feeling the effects of reduced consumer spending on non-essential products such as clothing, while certain medical supplies and food categories fly off shelves.
The RAI has asked for a 90-day grace period for retailers on income tax, goods and services tax, advance tax, and other statutory dues from March 1 to April 30 to help keep retailers afloat. The organisation also asked for a three-month subsidy at 50% on minimum wages to help shops to keep their staff employed.
“Currently, the retail industry is under lockdown,” the RAI said in a statement, ET Retail reported.
“With no revenue flow, the impact is significant to all retailers small or big. The entire consumption value chain will feel the impact of store closures. There is an urgent need for immediate economic stimulus to ensure continuity of retail stores and consumption in India.”
The pandemic is expected to continue beyond the lockdown period of eight to 10 weeks, the RAI said, so the effects could continue for months. The RAI asked the government for both an immediate solution for the coming 60 days and a medium-term solution for the coming 180 days.
“Banks must be mandated to give moratorium of 120 days for payment of instalments and interest of term loans, short-term loans, corporate loans, securitised loans, bonds, mortgages, debentures, general-purpose loans,” said the RAI.
Copyright © 2022 FashionNetwork.com All rights reserved.