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Uttar Pradesh traders have opened a front against online trade and demanded immediate ban on it.
The traders said online trade was adversely affecting millions of brick-and-mortar retailers, while robbing the state government of precious tax revenue.
They have announced to intensify stir in coming days if their demands were not met.
On November 13, traders and manufacturers under the aegis of Akhil Bharatiya Udyog Vyapar Mandal (ABUVM) will launch a state-wide agitation against online trade.
The traders had held a demonstration meeting at the Mahatma Gandhi statue near the main Hazratganj market in Lucknow last week.
Mandal President Sandeep Bansal told Business Standard he would soon meet Uttar Pradesh Chief Minister Akhilesh Yadav to apprise him of the traders’ concern and demand immediate action in this regard. “Later, we would chalk our future course of action and launch a nation-wide agitation in New Delhi,” he said.
Bansal said traders had clocked significant slide in sales during Diwali due to online trade.
“While, traders are subjected to 14.5 per cent value-added tax and two per cent Central sales tax besides development and service taxes, the online retailers are exempt from such levies. This helps them sell cheap compared to traditional traders,” he said.
Most online retailers operate as “marketplace” rather than retailers, which means they claim to be providing just a platform to buyers and sellers for a commission.
Since, foreign direct investment (FDI) in multi-brand brand retail is restricted, online retailers are able to operate as "marketplaces" and attract foreign funding as well.
Bansal further claimed customers were being supplied sub-standard products, as most manufacturers were producing dual quality products, one each for traditional and online retailers.
"The consumers are shortchanged in case there the product bought online is found defective," he added.
