MUMBAI: The Federation of Retail Traders Welfare Association has written to Prime Minister Narendra Modi and BJP national president Amit Shah to apply only two slabs for the Goods and Services Tax - 5% and 12%.

"We traders across India have always supported BJP and Shri Narendra Modi ji during election time. Business for the last three years, especially for small traders, manufacturers and shops have been severely affected and reducing every year due to demonetisation, online competition, FDI in retail and now because of a steep GST," reads the letter. 

Viren Shah, president, FRTWA said due to slack in retail business many malls have closed down, many shop owners have rented their shops as they are out of business. Overall retail business has come to a standstill, he said.

Shah said they appreciated the BJP's efforts to reduce GST but there are many items that are still in the 18% GST bracket. "We want only two slabs for GST - 5% and 12%. Also, fabric should be tax free as there was never any sales tax on it and the 5% GST on readymade garments should be further reduced," states the letter.

It has asked for simplification of labour laws and online procedures to be simplified.

"We hope positive steps will be taken on a priority looking at the large BJP supporters amongst trading communities all over India," says the letter. 

Published On : 06-04-2019

Source : Economic Times