Retailers across the country have been demanding industry status for the sector, as the trade – both organised and the unorganized – constitute one-fourth of each country?s GDP worldwide. Industry bodies are once again lobbying with the government for redressal of vital issues like the central sales tax (CST) and tax on commercial properties, which is occluding and bleeding the potential sunrise sector of the burgeoning economy.
Gibson Vedamani, chief executive officer, Retailers Association of India, feels, ?There is a need to have an institutional framework, a policy implementation in retail in order to provide this segment with an industry status. As part of the new Finance Bill, services tax on properties for retail should either be reduced or a new category should be created with less percentage. Until general sales tax (GST) is in place, retailers will not be able to take abatement on VAT.?
?We would be happy if the budget revises the CST downwards since it would encourage a free movement of goods and services across the length and breadth of the country. We hope the Centre would give certain guidelines to the states for the multiple levies ?, said Infiniti Retail chief executive officer Ajit Joshi.
?Retail, specifically, specifically shopping malls and centers, should be granted industry status. The lack of industrial status does not allow developers to effectively address major issues such as traffic regulation and staff satisfaction,? Shubhanshu Pani, president, retail, Jones Lang LaSalle Meghraj, said.
Pani added since service tax pertains to rentals, it should be clarified and freed from existing ambiguity. Moreover, electric supply to shopping centres and malls should be subsidised, in line with similar benefits given to other industries. Apart from this, the budget should incentivise the creation of cold storage chains to help reduce wastage (approximately 30% of products are currently wasted for lack of these).