Luxury Tax On High-end Ecommerce Sales Can Bridge Retail Gap: Report

A luxury tax on high-end products sold via ecommerce platforms would level the playing field between online and offline retailers, according to a joint report by the Confederation of All India Traders (CAIT) and All India Mobile Retailers Association (AIMRA).

The report stated that this is a critical moment for India’s retail sector and any delay in addressing these issues may lead to irreversible damage to the country's economy and retail ecosystem. In their white paper, CAIT and AIMRA proposed that there should be an immediate release of ecommerce rules under the Consumer Protection Act.

"Immediately suspend business operations of Amazon & Flipkart and their allied companies and restore only when they comply with the rules and law. A robust policy framework is needed to close regulatory loopholes, ensuring fair competition and consumer protection," the report recommended.

Praveen Khandelwal, Chandni Chowk MP and Secretary General, CAIT while addressing the mobile trade leaders called upon the traders all over the Country to strongly counter the unethical business practices of ecommerce giants. He said that the time has come when the trading community should strongly retort their game plan to captivate India’s retail trade. 

The report also mentioned that a fast-track system to resolve consumer complaints, led by an ombudsman, should be established. This would prevent deceptive practices and ensure timely interventions. It stated that discounting GST input credits for B2C e-commerce transactions would reduce tax evasion and prevent revenue losses.

“Exclusive cash back is anti-competitive and encourages grey market operations. A ban would help restore market fairness. These sales, which often serve as a platform for manipulation and collusion, should be suspended until the identified issues and resolved,” it added.