Guwahati: The Federation of Retailer Association of India (FRAI) on Tuesday sought tax cuts on daily use consumer goods to counter the high demand for smuggled and counterfeit products, which currently have a price advantage.
The FRAI, a representative body of about 80 lakh micro, small and medium retailers in 42 member retail associations, raised its concern against high taxes on daily consumption items, which it felt leads to illicit trade in the country.
“The high taxes are creating a huge demand for smuggled and counterfeit products across the country and are forcing millions of small and impoverished shopkeepers to deal with criminals and be part of this illegal activity,” the Federation said in a statement. Prior to the Union Budget for 2023-24, FRAI is seeking a reduction in taxes on daily consumer products, it said.
“FRAI has made a representation to the Finance Minister appealing to protect the interests of its 80 lakh retailers. These retailers sustain their livelihood by selling goods of daily needs like biscuits, soft drinks, mineral water, confectioneries, cigarettes etc,” the statement highlighted.
It said the small retailers’ pre-lockdown earnings were about Rs 6,000 - Rs 12,000 a month, while the slightly bigger shops or the medium retailers earn Rs 400 - Rs 500 per day. The micro-retailers earn as little as Rs 200 a day.
FRAI president Ram Asre Mishra said: “For quite some time now there has been an alarming rise IN smuggled and counterfeit products — particularly in daily consumption products that are sold by our members. Such illegal products are easily available across the country, including in rural markets, and their share is around 25-30 per cent of the total market.”
“Smugglers and criminals involved in counterfeiting activities cause financial, mental and physical harassment to millions of our members to sell their illegal products. Being poor, their small businesses are the only source of livelihood for their entire family. So, it becomes impossible for them to resist or stop trading in such illegal products.” Mishra said.