CAIT Suggests Luxury Tax on Online Shopping to Save Brick-and-Mortar Retailers

CAIT has urged a luxury tax on online purchases of e-commerce platforms to check the increasing domination by online portals and safeguard offline traders. The demand was put forward at CAIT's national conclave, which was "Cruel Face of Quick Commerce and E-commerce," in New Delhi.

 

Major Points:

✅ Luxury Tax Proposal: CAIT has called upon the government to levy a luxury tax under GST on every e-commerce transaction to stop online platforms from market manipulation.

✅ Policy Enforcement: The body of traders has asked for immediate enforcement of e-commerce and FDI policies and implementation of e-commerce rules under the Consumer Protection Act.

✅ Countrywide Campaign: CAIT declared a countrywide campaign from May 1, 2025, against what it describes as the "digital colonization" of retailing by e-commerce majors.

✅ Regulator Oversight: The association has suggested the creation of an autonomous regulatory agency for monitoring digital trade to promote transparency in algorithms, prices, and the selection of sellers.

✅ Effect on Retailers: CAIT pointed out that predatory pricing and market manipulation by online marketplaces are systematically destroying small retailers, calling upon the government to act immediately.

 

Through this effort, CAIT seeks to make the playing field even for conventional retailers, enabling fair competition and sustainable growth in India's retail industry.

 

Source: Inc42, BusinessWorld, The Hindu BusinessLine