Now, retail traders demand loan waiver

Of 7 crore small businesses in India, who have taken loans should be given a waiver in tax collection, says CAIT.

After loan waivers to the corporate sector and farmers, retail traders from across the country too have started demanding similar concessions from the Centre. The Confederation of All India Traders (CAIT), the apex umbrella body of retail traders of the country, has convened a meeting of its national governing council in Bhopal next month where the issue will be discussed. The confederation has decided to launch a nation-wide agitation across the country to press for the demand.

“Out of 7 crore small businesses in the country, all those who have taken loans, should be given a waiver and benefits in tax collection. These businesses are generating an annual turnover of about Rs 42 lakh crore and only 4% small businesses could get loans while the rest secure their loan requirements from other sources at a higher rate of interest. The traders deserve an economic package to survive in their businesses,” said CAIT secretary general Praveen Khandelwal.

Trade leaders of 26 states in a meeting held in the capital this week objected the manner in which farm loans were being waived and said that such a loan waiver was not less than a backstabbing of crores of taxpayers. They said that such freebies would not be accepted anymore and the CAIT would launch a nationwide agitation demanding that traders too were given similar benefits. The trading community, said Khandelwal, was collecting taxes on behalf of the government without any remuneration, whereas, traders were being forced to face a complicated tax system, penalties, and expenses on collecting taxes.

But unfortunately at the time of any natural calamity, traders have to suffer huge losses but no loan waiver or assistance has been given to them, while farmers are given loan waivers regularly, added Khandelwal.

“We have not committed any crime and therefore, we should also be given loan waiver like other sections. The traders are contributing greatly to national exchequer and employment in the country and so far no government has ever given any economic package to us,” said Khandelwal.

“Loan waiver has become a business of votes by the political parties whereas the Constitution has not authorised any government to give such uncalled-for loan waiver and increase the NPAS of the banks. It creates economic crisis. Crores of tax payers in the country contribute tax in hope of national and economic development and not for making discretionary loan waivers with no logical reasons. But State and Central governments are doing it for the corporates and farmers. Why not then the benefit be extended to the traders too?” he asked.