Federation of Karnataka Chambers of Commerce and Industry welcomes govt stimulus to boost demand
Oct 12, 2020
Bengaluru (Karnataka) [India], October 12 : Expressing his happiness on the measures to stimulate consumer spending announced by Union Finance Minister Nirmala Sitharaman, Federation of Karnataka Chambers of Commerce and Industry (FKCCI) President Perikal M Sundar said that the move will enhance the purchasing power of the consumer and invigorate the retail sector economy.
In a statement, Sundar said that the one-time disbursement of Special Festival Advance Scheme will bring a surge in the government revenue through GST.
"The one-time disbursement of Special Festival Advance Scheme is expected to amount to Rs.4,000 crore. If given by all state governments, another Rs.8,000 crore is expected to be disbursed. Employees can spend this on any festival which will enhance the purchasing power of the consumer and invigorate the retail sector economy and thereby facilitate a surge in the government revenue through GST," he said.
The FKCCI President stated that the Special Festival Advance Scheme which was meant for non-gazetted government employees is being revived as a one-time measure, for gazetted employees too.
Talking about the LTC Cash Voucher Scheme, Sundar said that the government employees can opt to receive cash amounting to leave encashment plus three-time tickets fare to buy something of their choice.
"The government employees can opt to receive cash amounting to leave encashment plus three-time tickets fare to buy something of their choice under the LTC Cash Voucher Scheme. Only digital payment mode is accepted and employees should produce the GST invoice to get the benefit," he said.
Trying to give a boost to the plummeting economy, Finance Minister Nirmala Sitharaman on Monday announced two proposals -- Leave Travel Concession (LTC) Cash Voucher Scheme and Special Festival Advance Scheme -- to stimulate consumer demand.
Sitharaman said there are indications that savings of government and organised sector employees have increased, "We want to incentivise such people to boost demand for the benefit of the less fortunate. We are presenting two proposals -- the Leave Travel Concession (LTC) Cash Voucher Scheme and Special Festival Advance Scheme -- to stimulate consumer spending."
Finance Minister said under the LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment plus three times ticket fare, to buy items, which attract GST of 12 per cent or more. "Only digital transactions are allowed, GST invoice has to be produced," she said.
The Special Festival Advance Scheme for non-gazetted employees is being revived as a one-time measure, for gazetted employees too, Finance Minister said.
"All the central government employees can now get an interest-free advance of Rs 10,000, in the form of a prepaid RuPay Card, to be spent by March 31, 2021," she said.
The interest-free advance of Rs 10,000 under the Special Festival Advance Scheme to be paid back in 10 instalments.
"The one-time disbursement of Special Festival Advance Scheme is expected to amount to Rs 4,000 crore. If it is given by all state governments, another Rs 8,000 crore is expected to be disbursed Employees can spend this on any festival," she added.
Finance Minister Nirmala Sitharaman will chair 43rd Goods and Services Tax (GST) Council meeting through video conferenceing later in the day.
