Amazon, Flipkart must comply with Govt’s FDI policy: CAIT
    Date :25-Nov-2019

 
Business Bureau :
 
Amid media reports that Amazon Chief Jeff Bejos is coming to India in January to meet Prime Minister Narendra Modi, the Confederation of All India Traders ( CAIT) in a communication sent to him has urged that prior to meeting Jeff Bejos, Amazon chief, Prime Minister should also understand the view point and concerns of traders of the country. For that purpose, CAIT has sought an audience with Prime Minister Narendra Modi. In communication of Prime Minister, CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said that the current e-commerce market of the country is highly vitiated by unhealthy and unfair practices of e-commerce companies particularly Amazon and Flipkart. These companies are constantly violating FDI policy of the Government both in letter and spirit. CAIT said that selling goods at a much lower price than the market value, they are causing huge GST revenue loss to the Government.
 
Further by registering huge losses every year these companies are escaping Income Tax obligations as well. By indulging into predatory pricing and deep discounting, these companies have created a gross uneven level playing field which is another violation of FDI policy. Both leaders said, CAIT is of the considered view that e- commerce is a future mode of business and as such CAIT has already started a nation-wide campaign from September 1, 2019 to connect 7 crore traders with e-commerce business by creating e-stores of every individual trader.
 
Therefore, we are much in favour of e-commerce but companies like Amazon and Flipkart needs to comply with FDI policy of the Government in letter and spirit and also need to compulsory comply with tax and other laws without any attempt to adopt any mechanism to avoid the obligations of policy and the law. CAIT has submitted that either both Amazon or Flipkart should be sternly ask to comply with the FDI policy or leave from India. CAIT has appreciated concerns and various steps taken by the Prime Minister to frame and enforce policies for protection and growth of domestic trade and small industries from time to time. Non signing of RCEP, simplification of GST tax structure, formation of National Traders Welfare Board, pension to traders and other issues which has reposed more confidence among 7 crore traders of the country.