Traders have high expectations from the budget: Bringing petrol and diesel under GST.
Chennai. In Tamil Nadu, over 40 lakh small and large traders form the backbone of the state’s economy. Spanning everything from grocery stores and wholesale markets to textile outlets, electronics and hardware shops, pharmacies, and other commercial establishments, this vast trading community not only provides employment to lakhs of people but also caters to the daily needs of ordinary citizens. Consequently, traders have high expectations regarding the upcoming budget. Trade associations believe that if the government takes a positive stance on their key demands, it will impart fresh momentum to business activities and aid in achieving the goal of transforming Tamil Nadu into a trillion-dollar economy.
Vikramaraja, President of the Tamil Nadu Federation of Trade Unions, has presented several significant demands to the government on behalf of the trading community ahead of the budget. He advocates for concrete steps to bring petrol and diesel under the ambit of the Goods and Services Tax (GST) to effectively control inflation and reduce business costs. He argues that fuel prices directly impact transportation costs, thereby driving up the prices of essential commodities. Bringing petrol and diesel under GST could stabilize prices, benefiting both traders and general consumers.
Trade associations point out that transportation costs are currently on the rise. High freight charges affect the prices of food grains, fruits, vegetables, construction materials, and other consumer goods. Relief in fuel prices could lower costs across the entire supply chain, helping to curb inflation.
Vikramaraja has also urged the government to prioritize the proposed greenfield airport project at Parandur for the state’s long-term development. He asserts that, given future economic needs and the ongoing expansion of industry and commerce, a modern greenfield airport could play a pivotal role in Tamil Nadu’s growth. He believes this project would attract investment, boost exports, and create new employment opportunities. They stated that a robust infrastructure is essential to develop the state into a hub for global investment and international trade. The construction of a modern airport would provide better facilities for industries, IT companies, exporters, and the business community, thereby strengthening the state’s competitiveness.
Traders have also expressed concern over the hike in electricity tariffs in recent years. They point out that electricity bills constitute a significant operational expense for small and medium-sized businesses. Rising electricity rates are making the operation of shops and commercial establishments increasingly costly; therefore, the government should review these rates and take necessary steps to provide relief to traders.
Similarly, trade associations have voiced concerns regarding the increase in property tax. They argue that the additional financial burden of the hiked tax falls heavily on small business owners. A review and reduction of property tax rates by the government would provide financial relief to traders, enabling them to focus more on expanding their businesses.
Trade associations maintain that Tamil Nadu’s business community has consistently contributed to the state’s economic growth. Traders play a pivotal role in generating tax revenue, creating jobs, and ensuring the availability of goods to consumers. Consequently, incorporating business-friendly policies into the budget is the need of the hour.
Experts believe that if the government seriously considers the key demands of trade associations, the business environment could improve significantly. Reduced transportation costs, relief in energy expenses, and infrastructure development could further strengthen the investment climate in the state. This would benefit Micro, Small, and Medium Enterprises (MSMEs) and likely accelerate economic activity.
Currently, the Tamil Nadu government is focusing on investment, industrial growth, and infrastructure strengthening across various sectors to achieve the goal of becoming a trillion-dollar economy. Trade associations believe that addressing their demands in the budget could prove to be a crucial step toward realizing this objective.
All eyes in the business community are now set on the upcoming budget. They hope that the government will take a positive decision on their practical demands and boost trade, thereby imparting new momentum to the state’s economy and providing relief to the common people from inflation.
