Budget 2025: Mobile Retailers Association Requests Tax Relief, Easy Access To Mudra Loans

All India Mobile Retailers Association has made some Union Budget suggestions on behalf of the mobile retailers in the country. In a letter, the association calls for reduction of GST on mobile phones, tax exemption for small retailers, easy access to Mudra loans, reduction of Merchant Discount Rate charges and supporting local initiatives. 

The Union Budget 2025 will be presented in the Lok Sabha on Feb. 1.

The letter mentioned that the grey market and high GST rates pose challenges to the sector's growth. However, it is important to note that GST is outside the purview of the budget. 

In terms of tax exemptions for small retailers, the association has requested relief for retailers with an annual income of up to Rs 10 lakh. Meanwhile, in terms of easier access to Mudra loans, the association has asked to allow NBFCs to give loans up to Rs 20 lakh to retailers without collateral.

Additionally, the association also sought to reduce the Merchant Discount Rate or MDR, charged by the banks on credit and debit card transactions to 0.50%. This is being asked to incentivise digital payments and reduce the burden on retailers, as per the letter.

The association mentioned that these measures will benefit retailers, help in job creation and add to the country's economic growth.

The AIMRA has also asked to reduce mobile phones GST from 18% to 5% but the GST landscape is outside the umbrella of the Union Budget.