The Retailers Association of India (RAI) has sought Emergency Credit Line Guarantee Scheme (ECLGS) for retailers in the sectors affected by Covid-19 pandemic.
Union Finance Minister Nirmala Sitharaman will present the Budget 2022 on February 1. Ahead of the presentation of the budget, the Retailers Association of India has suggested the government to take steps to boost consumption. The body of retailers in the country has suggested that the government should take measures to give more money in the hands of the consumers.
The suggestions of RAI come amid the struggle of the retailers across the country to overcome the disruptions caused by Covid-19 pandemic. RAI has suggested that steps should be taken to increase the spending power of the working and salaried class.
“Many were without jobs thanks to reverse migration and lockdowns. Any scheme that helps increase the spending power of the poor would be welcome. Similarly, the salaried class of the population also needs to get more money in their hands to help them consume with confidence,” said RAI in a statement.
Raising concerns over rising inflation, the RAI said that the situation can be faced better only with more money in the hands of the consuming class.
In addition, the retailer’s body is also expecting some changes in Goods and Service Tax (GST) norms and National Retail Policy. According to Kumar Rajagopalan, CEO of RAI, the Central government needs to guide the industry with better directions when it comes to the implementation of GST on various services and products.
Rajagopalan said that any increase in GST on clothing, food and housing created a direct impact on consumption and a direction for a more predictable GST regime would be welcome. He also appealed for clarification on many clauses around carrying forward and refund of GST.
The RAI also suggested the introduction of the Emergency Credit Line Guarantee Scheme (ECLGS), which will assist the retailers in various sectors affected during the Covid-19 pandemic. Rajagopalan said that the ECLGS needs to be announced and set up, especially for high-contact sectors such as salons, shops, restaurants etc.
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