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| Budget Wishlist: Retail |
| BS Reporter / New Delhi Jun 26, 2009, 01:14 IST |
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CEO-SPEAK- Vineet Kapila President, Spencer's Retail Limited
FDI IN MULTI-BRAND - THE WAY FORWARD
It is imperative that the budget comes up with growth conducive policies. We expect it to address issues like availability of easy credit to retailers, corporate tax holidays and real estate benefits to the retailers. There should be a decision on FDI in retail.
Additionally, the budget should address issues including improving infrastructure like roads, rail, air and port linkages which are the current handicaps of the industry.
Chamber Speak
FICCI
Indian retail sector has huge potentiality to grow. It ought to be granted an industry status. Larger and more efficient players should be permitted to enter this sector. Also, the budget should look at allowing FDI up to 49% in multi-brand retail. Service tax on all inputs such as rents and telephone should be allowed to be adjusted against state VAT collected on sale of such goods. Inter-state levies should be abolished and uniform VAT across all states should be ensured to make India ‘One Common Market’.
CII
The government should consider granting an industry status to retail in order to ensure access to continuous organised financing. The upcoming budget should also look at removing the service tax levied on rentals. The budget should also look at allocating special economic zones and tax holidays for warehouses and cold chain facilities, an integral to several key aspects of retail business.
EXPERT VIEW: N V Sivakumar, Leader Retail Practice, PricewaterhouseCoopers
Opening up FDI in retail will bring in the much needed foreign investment in back end infrastructure. It will also create jobs, boost consumption and will have huge spin-off benefits on agriculture. The kirana stores will innovate, compete and co-exist with the large retailers.
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