Budget 2022 Expectations: The retail industry has been staring at the Union Budget 2022 to make a comeback at a time when the sector has been struggling with pandemic woes. The Covid-19 pandemic has had an effect on the economy as a whole, and the retail industry is one of the major sufferers — with its business spiralling down amid lockdowns and restrictions.
With the Union Budget 2022 less than a week away, people from the retail sector in India are mounting their hopes of the government, believing that it would provide support to the industry from the upcoming financial year. Finance minister Nirmala Sitharaman will present Budget 2022 on February 1, Tuesday.
Health and Wellness Sector
Praveen Chirania, founder of Muscle and Strength India noted that healthcare and holistic wellness have become more important amid the pandemic and wanted GST rationalisation in the sector.
“Since the coronavirus outbreak, people have become more aware of the importance of living a healthy life. Hence, the health and wellness sector underwent a massive change, owing to a striking shift in consumer demand. Self-care, preventive healthcare and holistic wellness have taken centre stage with a growing awareness around nutrition and immunity among consumers,” said Chirania in a note on Budget 2022.
“Hence to give impetus to the overall industry, we hope that the government will rationalise GST on healthcare supplements from 18 per cent to 5 per cent in the upcoming Union Budget 2022. This would help in making the products affordable and accessible for all and help boost the healthcare agenda of the government,” he added.
Fashion and Retail Sector
The recent increase in GST on footwear below Rs 1,000 has affected the fashion startup industry, said Aradhana Minawala, co funder of The CAI Store.
“The third wave of Covid has had its adverse effects on the startup industry and we’re looking forward to tax relaxations and incentives in the upcoming budget. The recent increase in GST on footwear priced below Rs 1000 has also had an impact on the retail industry, and more for the consumers willing to purchase affordable footwear,” she said.
Minawala mooted for reconsideration of these rates like that was done in case of textiles. “We hope the Government reconsiders these rates in the near future like done for the textile industry. A rollback on the same is required not just for the retail but also the startup industry altogether,” she said.
Consumer Durables Sector
For more than a year, the consumer durables sector has been facing challenges with raw materials and experts this year are expecting the Union Budget 2022 to help them out.
“We are optimistic that the Union Budget will help reduce cost pressures for manufacturers and improve affordability for consumers. The budget may also look at reducing taxes on eco-friendly and energy-efficient products, which could help drive demand and increase consumer adoption of sustainable products,” said Parag Kulkarni, Managing Director at A. O. Smith India.
“Water purifiers and water heaters have become essential household items. We expect the budget to help rationalize tax rates on these consumer durable items, increasing the popularity and need for these products in India,” he added.
Food and Desserts Sector
“The chocolate industry has a huge growth potential. A few measures by the Government will help the industry achieve it,” said SMOOR founder-director and CEO Vimal Sharma.
“Chocolates currently have a GST of 18 per cent, a reduction of the same to 12 per cent will definitely boost the growth in the category and it will also benefit the small players with boutique offering,” he said.
Sharma said that reducing the import duty chocolate raw material will help reduce its cost, and help the industry grow.
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Source: News18