Budget 2024- Extend all MSME benefits to retail traders, urges retailers’ body RAI

Budget 2024: Extend all MSME benefits to retail traders, urges retailers’ body RAI

Retailers’ body Retailers Association of India (RAI), in its pre-budget expectations, has urged the government to extend all benefits available for MSMEs in the country to retail traders also. Currently, retail and wholesale traders are eligible only for formal credit under the priority sector lending (PSL) norms.

Retail and wholesale tradeswere added to theMSMEdefinition for PSL benefits from banks in July 2021.

Currently, MSMEs with Udyam registration are eligible for benefits beyond PSL such as registration on Government eMarketplace portal for public procurement, Samadhaan portal for addressing issues related to delayed payments, and TReDS platform to finance their invoices.

Moreover, subsidy on patent registration, electricity bill concessions, reimbursement of ISO certification (cost),marketingand promotion assistance from the government, and technology upgradation support are among other benefits available to registered MSMEs.

RAI also sought a lower interest rate for retailers to assure easier financing. “The government should allocate a special fund and formulate a special trader finance scheme with SIDBI to help millions of independent retailers across the nation by declaring low-cost loans and relaxing some industry guidelines,” it said.

The association further suggested steps to encourage retailers to use EDC (electronic data capturing) machines and also that the cost of accepting digital payments is never more than the cost of accepting cash. For this, RAI called for free or subsidized dispensation of such machines to retailers.

“This can be done in stages – around 25 lakh machines to start with can be a good start. It will also help the government as these retailers will register under GST.”

Among other suggestions made by the association were lower taxes, simplified GST norms, promoting digital transactions through subsidized MDR (merchant discount rate) on the use of the debit card, expediting formulation and implementation of the National Retail Policy, and adopting the Model Shops and Establishment Act that enables the states to choose to keep shops and other such establishments open 24×7 all through the year.

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