The trade and industry body has been vocal in demanding relief from the government for retailers who have been bearing the brunt of the pandemic since last year.
Goa Chamber of Commerce and Industry (GCCI) has sought a financial relief for retailers and malls, for the second time for small and big retail establishments in the State.
According to the GCCI, the government must waive off the local taxes levied by the municipal councils and panchayats for the first five months of the year – April to August 2021 – or until normalcy is attained.
The waiver in taxes must be immediate and on house tax, property tax, sanitation tax, trade / occupation licences etc which are levied on retailers and traders, said the industry body.
“With zero revenues, retailers are still expected to pay overheads such as salaries, electricity, taxes and rentals. If timely relief package is not provided by the Government, to ease the financial stress,then the retail sector will find it hard to survive this second wave, factoring that they have barely managed to survive the first wave” Manoj Caculo | President, Goa Chamber of Commerce & Industry
The GCCI has also asked for special loan package from the Economic Development Corporation (EDC) to assist retail businesses.
Manoj Caculo, President of GCCI, stated that such loans should be collateral free and secured against inventory or debtors. “The loans should be at a lower rate of interest and long term. If possible, the loans could be guaranteed by the State Government so that other banks could participate as well.”
The memorandum submitted to Chief Minister Pramod Sawant points out that the retail sector works on thin margins and volumes, which by nature makes their business model vulnerable. To remain afloat, it needs consistency of business hours, certain number of foot-fall, conversions and spending power and optimism from the consumers.
According to GCCI, COVID-19 had a deeper impact on the retailers, as the curfew restrictions led to operations coming to a grinding halt, with the only exception being pharmacy stores.
The industry body said that establishments need to pay wages, rent, taxes, interest on borrowings, need cash flow for purchases, credits, have huge maintenance costs – with all these factors being almost constant, irrespective of the business.
Further, Caculo added that the cash inflow of the retail sector has come to a grinding halt, while fixed operating costs reamain intact. “If a timely relief package is not provided by the government to ease the financial stress, then the retail sector will find it hard to survive the second wave, factoring that they have barely managed to survive the first wave.”
A few weeks back, Caculo had asked for retailers and their employees to be treated as frontline COVID warriors on account of their constant interaction with customers.
________________________________________________________________________________
“The Goan jewellery business has been hit hard by the pandemic. Cancelled or postponed events and weddings had brought the jewellery industry to a standstill with virtually no footfalls in jewellery stores, amidst the fear of virus spread. Many small jewellers had to even shut down their stores. The industry further lost out on Gudi Padwa and Akshaya Tritiya, which fell during the time of curfew and lockdown.
When it looked like businesses were recovering in early months of 2021, have now been left scattered by the second wave.
It is a commendable effort from GCCI to seek relief for retail businesses from the government is much-needed in today’s crisis.”
Vikram Verlekar | Ulhas Jewellers, Margao
________________________________________________________________________________
“Exigent costs, fierce online competition and reduced volumes have already depleted working capital in retail businesses in the last few years. The last 15 months of staggered business with lockdowns have eroded into the fixed savings which were kept aside for future plans.
Yearly local governemnt levies, if rebated to the extent of closure of operations, will afford a small respite out of the many stacks of cost burdens on retail businesses.
If the intent is to cure the retail business suffering from weakness in working capital as well as uplift his spirits, fiscal policy must provide the vitamin of interest loan, to kickstart movement to halted inventory. The GCCI’s appeal to the government for relief to retail is timely and worthy.”
Pavan Agni | Buyspex, Porvorim
________________________________________________________________________________
“The impact of the second wave of Covid 19 with the anticipated third wave, has totally derailed the economy and a rigorous implementation from the Government to provide support is highly essential.
An interest rebate for at least two years on term loans and credits availed, will be essential for businesses which have been affected due to a drop in cash flow. Municipalities should waive house tax and trade fees, electricity concession and an extension in payment credit is required.
We need the Government to support us with revenue getting affected. It will take around 2 years for things to stabilize with the above reforms, with vaccination as the key.”
Rahul Naik | Sitara Motors, Navelim
________________________________________________________________________________
Since pandemic retailers have been struggling because of drop in demand and consumption. The main driver of retail business is consumption led demand. Small and medium retailers are managing their working capital through operation revenues. Retailers are not getting any State support like manufacturers or MSME, which makes it difficult for them to pay fixed costs and also plan for fresh merchandise.
Therefore, GCCI’s demand to government to provide some relief to retailers and help them stand and get back to business. We request to waive off various state levies, taxes collected by various local authorities and offer deferment in the payment of GST and electricity charges.”
Hari Kaul | Chairman, GCCI Retail Committee
