Looking forward to rollout of India's national retail policy: IKEA

IKEA India has requested a reduction in GST rates "on things that are basic to life at home" in its Budget wish list.

IKEA, a Swedish furniture and home furnishings company, said on Friday that it is looking forward to the implementation of India's national retail policy, which would integrate offline and online shopping under one regulation framework and reduce compliance costs.

IKEA India also requested that GST rates be reduced "on things that are basic to life at home" and that customs taxes on good quality furniture and home products be reduced in its Budget wishlist.

"The economic impact of the pandemic on people's income in India should not be overlooked. It is critical to boost money in people's hands and keep products inexpensive in order to encourage demand "PreetDhupar, CFO of IKEA India, said in a statement

"We also see life at home take on growing significance as hybrid work models continue to evolve in the future," she said as a result of the epidemic.

"We look forward to the roll out of the National Retail policy, which will bring offline and online retail into a single policy framework, reduce compliance and regulatory burden, give retail industry status, and provide financial incentives to large-scale projects," she said, noting that the retail sector played an important role in citizens' lives during the pandemic.

Customs charges on raw materials and intermediates that are not available in India should be reduced, according to Dhupar, in order to make Indian furniture competitive.

"Companies that intend to manufacture in India would profit from PLI initiatives, lower- cost financing, and tax incentives in the early years. To improve India's competitiveness   in the global market, we must consider adopting tried-and-true global quality standards "she continued.

Dhupar advised that because retail is a capital-intensive sector, the time to set off and carry forward losses and interest be extended beyond 8 years.

"Tax consolidation across group companies will go a long way toward simplifying company operations, ensuring tax optimization, and reducing litigation," she noted.

There is a loss of GST credit on spends for an industry that spends money on  shop building, according to Dhupar, who added, "This anomaly should be removed."

"To do this, we believe it is important to take steps to trigger private  consumption,  support manufacturing and exports, promote and set aside funds for infrastructure- related capital expenditure, and continue to focus on spending in public health and healthcare," she said, expecting the Budget to focus  on  providing  stimulus  for economic growth.

Courtesy:www.business-standard.com/