The Confederation of All India Traders (CAIT) Gujarat unit has demanded a blanket ban on ecommerce trade in India, accusing the online retailer platforms of flouting Foreign Direct Investment norms and causing GST & Income Tax revenue losses to the government treasury.
According to reports, CAIT is also seeking to set up an independent task force including tax experts, retail experts, and economists to investigate their alleged unethical practices like heavy discounting, predatory pricing, high commissions, among others.
The Gujarat association’s officials, led by its state president Pramod Bhagat, have submitted a memorandum to the parliamentarians of Navsari and Surat as a part of its nationwide protest.
Deep discounts causing massive revenue losses for the government
CAIT alleged that the ecommerce companies’ were causing substantial revenue losses to the government by openly flouting the FDI policy and selling goods at prices much below fair market rates offering huge discounts by charging GST at a much lower price.
“By selling at cheap rates, e-comm companies are also making retailers across India suffer losses. We have demanded an immediate ban of e-comm portals across the country in the wider interest of the vast base of retailers.”
Earlier, the CAIT sought a blanket ban on the Diwali festive sales on ecommerce marketplaces like Amazon and Flipkart.