Online shopping companies specially — Flipkart and Amazon are eating into the market share of small retailers which is impacting their business adversely. Cash and Carry firms are selling their goods to customers more than to the traders and to safe their interest State Government should keep a tab on the system, said Finance Minister Jayant Malaiya during the first meeting for discussion on the budget.
Suggestions from traders and industrial organisation were taken in the first phase of the three phase meeting. During the first phase, industrial bodies voiced that these ‘Online retailers’ were not registered with the State and did not have any depot in the State which helped in evading from all kinds of taxes imposed by the State.
Malaiya held pre-budget dialogue with State’s trade associations, traders and tax consultants here on Tuesday. He sought suggestions from them about making trade-business more vibrant and smooth and held extensive discussions on their problems. The Finance Minister said that problems being experienced in submitting online returns would also be solved. On traders’ suggestion, the Finance Minister said the State-level VAT Advisory Committee would be revived. Principal Secretary Commercial Taxes Manoj Shrivastava and Secretary Finance Manish Rastogi also participated in the discussions.
The Finance Minister said sending assessment electronically was under consideration. The e-Registration System introduced in five districts will be implemented in entire State from April. During discussions on loss to the Government and traders due to online trading, the Finance Minister sought suggestions to overcome it. The Minister assured to consider their suggestions. The Finance Minister said that arrangements to send online notices to traders would also be made. He added it was being contemplated to create separate category for government institutions in Bhama Shah Awards.
Trade associations and traders lauded the state government for e-Gatiman Yojana for Form-49, reduction of tax on iron from 5 percent to 2 per cent and other trade-friendly measures. They suggested reducing penalty imposed for delay in filing returns and prescribed its maximum limit. They also suggested to expedite disposal of cases in appellate board and continue period of stay till disposal of cases. It was also suggested that a trade development cell should be created.
The traders suggested that Commercial Taxes Department’s activities should be separated from departmental software and traders with small turnover should be given facility of annual return.
Trade associations, traders and consultants put forth a number of suggestions regarding improvement in tax laws, rules and arrangements. The Finance Minister assured to implement these suggestions as far as possible.