CAIT demands financial package from centre and states, claims 12 lakh crore loss in 45 days

Jamshedpur, May 18: The Coronavirus outbreak has caused business losses in  past 45 days  to the tune of Rs 12 lakh crore to the domestic trade of India, which is a substantial loss and surely will adversely affect restoration of businesses in the Country at a time when lockdown will be withdrawn-says the Confederation of All India Traders (CAIT) today while releasing the figures of the losses.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 Mr. Suresh Sonthalia National Secretary  of the Confederation of All India Traders (CAIT). There are about 8 crores small businesses in the Country which are involved in trading activities.

Mr. Sonthalia 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,  Jharkhand  About 10 thousand cores ,Karnataka about 50 thousand crores and likewise the other States have incurred substantial business loss during past 45 days.

Mr. Sonthalia 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 covid 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.

Mr. Sonthalia urged Union Finance Minister Mrs. 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 Stat Governments are also liable for traders of their respective States.

Sonthalia 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.