Most Retail players want a balanced Budget that broadens and pushes the overall economic growth, including cutting down on multiplicity of taxes and allowing FDi in multi brand retail.
The retail sector in the country has made noteworthy progress in the last few years on the back of a jagged rise in disposable earnings and buying power of the Indian Middle class. The ingress of established wholesale retail chains has reformed the wholesale shopping experience and given retail customers the prospect to buy a cross section of products at wholesale rates. However, a lot needs to be done to further build up the sector and give customers a truly world class experience.
End to range of taxes and consenting to FDI in multi-brand retail
Retailers are expecting the Union Budget 2016 to unveil measures that will push overall economic growth, increase income levels, and boost consumer sentiment.
Vaibhav Singhal, MD and CEO, Savemax, says: “We are banking on the Budget for more spade work on the GST as that will put an end to multiplicity of taxes and streamline the overall tax regime of the country. Allied sectors like Transport, Warehousing, logistics etc must be looked into and given adequate support since they have a vital role in retail sector’s growth. We also expect the government to take positive steps in creating a level playing field for all retailers operating in India. These policies will have a positive impact on online players (operating on market place model or logistic providers), modern retailers (Wholesale and B2C, both models) and even the neighborhood stores. Further, in line with the “Make in India” initiative, homegrown companies must be incentivized and supported through tax sops and policy interventions for a level playing field and healthy competition.” Savemax, a multi brand retail chain, established in 2011, which cater to Business to Consumer (B2C) customer and Business to Business (B2B) segment also. Savemax has presence across four states including Delhi, UP, Haryana and Punjab.
Retail sector has experienced an impressive growth recently due to increase in household income, urbanisation and attitudinal shift in customer preferences. However, a lot still needs to be done.
Sonica Malhotra Kandhari, Director, MBD Group says, “The Budget 2016-17 must introduce tax SOPs to further boost this segment. Moreover, I hope this year’s budget gives a green signal to GST, which will help in managing the multiple indirect taxes, hence benefiting the end customer. Paucity of several mega and big ticket players across all geographical markets is paramount. The budget must also allow FDI in multi brand retail so that the sector gets on par with international standards. Time has also come to give sops to the retail industry to usher in vibrancy around retail like in the case of Dubai and Singapore, where shopping festivals have become a big source for attracting tourists from around the world.”