Moneycontrol
Last Updated : Jan 14, 2019 10:30 AM IST | Source: Moneycontrol.com

Govt mulls sops for small traders, exporters ahead of Lok Sabha polls: Report

Government is looking at addressing concerns of traders of kirana stores, wholesalers and also exporters who felt an impact on their businesses due to GST and demonetisation

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The Centre is planning a set of incentives for small traders ahead of the Lok Sabha elections.

The government is looking at providing insurance cover, cashbacks for digital payments and subsidies and finance for buying computers and digitisation of businesses to woo small traders, according to a report by The Times of India.

"The government will pay the premium for traders who are registered under GST (Goods and Services Tax)... The other steps are expected to upgrade and modernise the existing retail trade," a person familiar with the development told the newspaper.

This comes soon after the government announced 10 percent quota for ‘economically weaker’ sections of upper castes and also doubled the GST exemption limit for small traders.

Government is looking at addressing concerns of traders of kirana stores, wholesalers and also exporters who felt an impact on their businesses due to GST and demonetisation.

Department of Industrial Policy and Promotion (DIPP) is already working on elements of what is being billed as a retail policy, the report suggests. Small businesses already have received many relaxations in the GST structure which is being seen as the Modi government’s attempt to reach out to them.

Also read | PM Modi mulls cash handout for farmers ahead of Lok Sabha polls: Report

Apart from small traders, the government is also extending support to exporters. It is reportedly working on a new incentive scheme which will also address concerns of countries like the US that have dragged India to the World Trade Organisation (WTO).

The report, citing government sources, further suggests that the commerce department has worked out a proposal under which the current incentive scheme through ‘Merchandise Exports from India Scheme’ will only be available for farm exports.

In addition, the costs incurred by exporters on aspects such as property registration will be covered by the government. For this, the government is working on a duty and tax refund mechanism on the lines of Rebate on State Levies (RoSL).
First Published on Jan 14, 2019 10:30 am
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