CAIT Demands Compensation Package from both Centre and States

CAIT has said that because of the continuing lockdown, businesses have lost 12 lakhs crores in past 45 days. This loss has been to the domestic trade of India, which is a substantial loss and will adversely affect restoration of businesses in the country at a time when lockdown will be withdrawn - the Confederation of All India Traders (CAIT) statement said while releasing the figures of the losses.

"We estimated the State wise loss of internal trade and found that total trade and commerce loss due to COVID-19 for the Country stands at about 12 lakh crore, which is quite huge loss as the total value of the domestic trade in the Country is estimated at 1 lakh 15 thousand crore per annum," said B. C. Bhartia, National President and Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT). There are about 8 crores small businesses in the Country which are involved in trading activities.

Bhartia and Khandelwal said that out of the total business loss of about Rs. 12 lakh crore, it is estimated that the coronavirus has caused a loss of about 7.50  lakh crore to the retail format of trade, while the wholesale trade in the Country suffered a loss of about Rs.4.50 lakh crore during the past 45 days. It is estimated that Maharashtra suffered a business loss of about 1.10 lakh crore, Delhi, a loss of about 30 thousand crores, Gujarat about 60 thousand crores, Uttar Pradesh about 65 thousand crores, Madhya Pradesh about 30 thousand crores, Rajasthan about 25 thousand crores,  Chhattisgarh about 23 thousand cores,  Karnataka about 50 thousand crores and likewise the other States have incurred substantial business loss during past 45 days.

Bhartia and Khandelwal further said that in the states where markets were opened in early days and later partially opened for a few hours, there was a very minimal footfall of the customers as it is believed that the people are under the grip of fear and avoid going to markets except for purchasing essential items. It might have led to an increase of businesses in e-commerce, they said. However, it has been noticed that despite of the restrictions in Corona guidelines in every state, various prominent e-commerce companies engaged in sale and delivery of non-essential items and no state has taken any note of it which has been strongly objected by the CAIT and traders across the country. It appears that these companies are allowed to offend the law and the policy and they have no fear of law anymore.

Both Bhartia and Khandelwal urged Union Finance Minister Nirmala Sitharaman and Chief Ministers of all the states to give a financial package to traders to restore their business activities when the lockdown is lifted. Traders are not the responsibility of Central Government alone, but the state governments are also liable for traders of their respective States according to them.

Bhartia and Khandelwal recalled that last year during lockdown the traders did not find any place in various packages announced by the Government though interests of all other sectors of the economy were duly taken care of. They said that as a first measure, the Government should suspend all statutory dates of compliance under GST, Income Tax and TDS for at least till 31st August,2021. Besides, it may also direct the banks and other financial institutions to award loans to traders in an easy manner and at a subsidized rate of interest. The bank charges on making digital payments should be waived off and the government may subsidies the bank charges directly to the Banks.

It is to be remembered that because of the lockdown, traders have been saying they are losing money and hence, either the lockdown should be relaxed or they should be compensated. However, the nature of compensation varies from one association to another. CAIT represents the traders from all over India. Hence, it remains to be seen what is the outcome of this demand.