Retailers association seeks relief for COVID-hit industry

Retailers Association of India (RAI) on May 27 urged the government yet again to roll out relief measures for retailers, who have been reeling from the impact of the new set of curbs imposed to contain the spread of the second wave of the COVID-19 pandemic.

“Retail businesses are under tremendous financial strain due to the extended closures. According to the association, the financial pressures are on various fronts such as salaries, rentals, electricity charges, and various taxes and license fees among others. Easing the burden will require the support of various bodies driven by the governments,” RAI said in a statement.

The association has asked for relief measures such as an extension on renewal of existing permits, licences, no-objection certificates (NOCs); and permissions including shops and establishments’ licences, trade licences, food licences, fire NOCs, signage licences and others required by malls, shopping centres, retail stores, restaurants, and pubs, for one year. It also wants a relaxation in compliance requirements of retailers to pay MSME suppliers in 45 days’ time till March 2022.

Earlier in the week, RAI had released a survey report which indicated the magnitude of the impact of the lockdown on retailers in the country. As per the survey, retailers across the country have witnessed 49 percent sales degrowth in April, 2021, as compared to the same period in 2019.

While in March, when the country was witnessing relatively fewer daily COVID-19 cases, the industry had recovered about 88 percent of its business and reported only 12 percent sales degrowth, the survey showed.

RAI over the past few months has repeatedly sought relief measures from the government. Earlier in April, it had asked Finance Minister Nirmala Sitharaman to extend benefits of emergency credit line guarantee scheme to retailers while seeking a moratorium on principal and interest of all loans for up to 6 months stating that curbs due to the second wave of COVID-19 have crippled the sector.

Here are some other relief measures that the association is seeking from the government.

> Government of India to pay PF contribution of both employer and employee (12 percent each) till September 2021 for all employees earning less than Rs.15000/per month.

> 100 percent relief to landlords and malls in payment of property tax for the year 2021-22.

> Mandate Electric Distribution companies to waive minimum demand charge for the period April 2021 to June 2021.

> Extend the benefits of ECLGS 3.0 to retail companies

> Announce a moratorium on principal and interest for six months