The industry body asserts that implementing these measures will enhance overall consumer sentiment, positively impacting the retail sector
Bengaluru: Industry apex body Retailers Association of India (RAI) has suggested prioritising demand stimulation and encouraging consumption through incentives or concessions, particularly in the form of reduced taxes in its recommendations to the central government for the Union Budget for FY 23–24.
RAI asserts that implementing these measures will enhance overall consumer sentiment, positively impacting the retail sector. Tax benefits and relief to individual taxpayers will increase the monthly disposable income, in turn supporting consumption benefits which directly benefit retail businesses in the country.
Moreover, the retail body has also asked the government to prioritise growth-oriented measures like supportive policies, simplified regulations, skill development and simplified goods and services tax (GST) norms to aid in the development of the retail industry.
RAI further proposed that retail and wholesale traders should be entitled to all benefits offered to other micro, small and medium enterprises (MSMEs). Currently, they are only eligible for formal credit under the priority sector lending (PSL) norms.
The association has put forth several additional recommendations, including offering low-cost finance to retailers, promoting convenient digital payment methods, recognizing retail as an essential service, hastening the implementation of a national retail policy to facilitate ease of doing business, facilitating e-enablement of MSME retailers, and endorsing the adoption of the Model Shops and Establishment Act, allowing states the option to keep shops and other establishments open 24×7 throughout the year.
