Demonetisation, GST hit traders, growers hard

Bhanu P Lohumi

Tribune News Service

Shimla, October 22

The twin radical reforms – demonestisation and Goods and Service tax (GST) – which the NDA government claimed as its big achievement are likely to cost the BJP heavily in the poll-bound state of Himachal as traders, apple growers and consumers are feeling the pinch.

“The GST has spell doom for the traders as well as workers as more than one lakh people earning between Rs 5,000 and Rs 10,000 per month have lost their jobs, 30 per cent of the small traders have left business while 5.20 lakh families are directly or indirectly associated with business and trade in the state are at receiving end”, says president Himachal Veopar Mandal Somesh Kumar Sharma.

Business community is feeling crippled after the imposition of the GST which has not only resulted in price rise, high tax rates and cumbersome procedure of filing 37 returns annually but also led to job loss in the lower economic strata. Even the traders supporting the BJP are unhappy with the GST while the Congress is exploiting the issue to the hilt in the elections.

The situation is no different in state capital Shimla as the sales have gone down by over 70 per cent as compared to last year and steep rise in cost of hiring accountants has forced us to prune work force, says Shimla Beopar Mandal president, Inderjeet Singh adding more people would lose jobs is festival season is now over.

“My CA used to charge Rs 10,000 per year but after the GST the charges has increased to Rs 10,000 per month” says Varun Sood who owns four shops in Lower Bazaar. “The sales have registered major decline and we have asked six of the total 16 employees to leave as there is no business”, he stated.

APPLE GROWERS

The apple growers have been hit hard by demonetization as arhtiyas converging on apple growing areas with money backs during the season have disappeared. Small growers have been left in lurch as their produce is not being lifted and they are dependent on big growers and forwarding agents but even after this the payments are being delayed inordinately.

“The demonetisation took place in November last year when the payments start coming. The payments were delayed and received in installments and the growers were starved of cash for purchasing fertilizers and pesticides in Januray,” said president, Apple Growers Association of India, Rajender Chauhan.

Apple economy survive mainly on cash transactions but this year the Rs 4,000 economy has slid by Rs 1,000 crore as returns from apple dropped by RS 400-500 per box of 25 kg, he said adding that about 2.5 lakh families are depend on apple cultivation in nine districts of Himachal.

CONSUMERS

Among the consumer the middle class honest tax payers are the worst sufferers as they get their wages after reduction of tax, pay taxes on all the purchases and even bank transactions have become dearer. “My expenditure has increased by Rs 5,000 per month without any extra spending and this time there would be upsurge against the BJP among the middle class which has been made the scapegoat”, said Avinash Kumar, a government employee.

Traders 

• Business community is feeling crippled after the imposition of the GST
• It has not only resulted in price rise, high tax rates and cumbersome procedure of filing 37 returns annually, but also led to job loss in the lower economic strata

Apple growers 

• The Rs 4000 apple economy has slid by Rs 1,000 crore
• Returns from apple dropped by Rs 400-500 per box of 25 kg
• About 2.5 lakh families are dependent on apple cultivation in nine districts of Himachal