Fame has proposed a special tax of 5% on e-commerce.
Indian Union Budget 2021-22: Union Finance Minister Nirmala Sitharaman will present the budget for the financial year 2021-22 on 1 February. The Federation of All India Trade Chambers (FAIVM) has sent suggestions to the Union Finance Minister on behalf of the retail traders for the Finance 2021-2022. In the suggestion sent to the Finance Minister before the budget, Fame has urged that the business community should also be considered as an equal partner in the national economy, only then the country will be able to achieve the target of $ 5 trillion (Rs 366 lakh crore) economy by 2024. The interest of retail investors is not affected due to e-commerce, so that online traders have been demanded to be taxed.
Fame has advocated a partnership like corporate and limited liability partnership (LLP) within the tax bracket of 22%. Right now, 30 percent tax has to be paid on these. Apart from this, the FAM has suggested that the provision of tax deduction at source be applied only for those merchants whose annual turnover is more than Rs 10 crore. FAME, reiterating its old demand, has urged the government that manufacturing, service and retail should be kept under the same ministry simultaneously and like small scale industries and services sector, retail traders should also get all the benefits.
Proposal to impose special tax of 5% on e-commerce
At this time, online shopping is increasing rapidly, which is affecting the traditional domestic retail business. Regarding this, the FAM has suggested that a special tax of 5% should be imposed on the total business of online e-commerce. According to the fame, this will also increase the revenue of the government and the traditional retail of the country will also be competitive.
Important to bring amnesty scheme in GST
The FAME has suggested that an amnesty scheme should be brought to rectify any kind of mistake in the GST statement like the ‘Dispute to Confidence Scheme’. According to the fame, mistakes are made in the GST statement in unknown to most businessmen, in such a situation the government should be given a chance to rectify these mistakes without any penalty.
According to Fame’s National General Secretary VK Bansal, the government should bring a subvention scheme in the interest on loans for traders in the budget. This will help the traders in the environment of Corona epidemic.
Expectation of relaxation in current laws
Bansal has appealed to the Finance Minister that due to the global epidemic, some businessmen have cut their workers’ salaries rather than layoffs, for which they should be kept out of the purview of the Minimum Wages Act. Some traders have laid off due to the Corona epidemic, due to which they have less than 20 employees, but according to PF Provisions they still have to follow its provisions. Bansal has requested in a letter sent to the Finance Minister that it be postponed for 2 years.