Suggested policy changes in the upcoming Budget for the retail sector

- Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj:

1. Retail - specifically shopping malls and centers - should be granted industry status. The lack of industrial status does not allow developers to effectively address major issues such as traffic regulation and staff satisfaction/retention. Nor can retail avail of industry-appropriate subsidies, benefit from more favourable import/export laws or introduce the level of transparency required to attract more foreign players

2. Service tax as pertains to rentals should be clarified and freed from existing ambiguity. Service tax rentals paid for property that retailers occupy is an unrealistic financial burden. Thanks to increased competition, retailers are already operating on thin margins, and the added encumbrance of service tax only serves to make goods costlier for consumers.

3. Electric supply to shopping centers and malls should be incentivized/subsidized, in line with similar benefits given to other public spaces.

4. The budget should incentivize the creation of cold storage chains to help reduce wastage (approximately 30% of products are currently wasted for lack of these)

5. The budget should facilitate the creation of retail-related community centers in Tier IV/IV cities and towns that are undergoing rural consolidation, to help retail spread to these locations in a uniform and systematized manner

Contributed By : Arun Chitnis