The National Restaurant Association of India (NRAI) is disappointed with the Union Budget 2022. NRAI President Kabir Suri has sought “some immediate liquidity support” along with an “immediate rationalisation of the current GST structure.
The Association claimed the “highest rates of morality” amongst the hardest-hit sectors amid the COVID-19 pandemic, though the Association also claimed the ‘highest rates of morality’.
Referring to the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) up to March 23, and an additional Rs 50,000 crore for hospitality, the NRAI head implied that more direct and immediate support could be granted.
The extension to the ECLGS will allow a one-year moratorium extension for loans availed under the ECLGS Scheme, but it may ease current liquidity issues only for some businesses which have existing credit lines or outstanding sanction available loans, the letter read.
In detailing the setback to the said industry, Suri mentioned, “In FY21, the Indian Food Services Industry contracted severely, leading to the permanent closure of over 25% of food business operators, which resulted in job losses of nearly 24 lakh people. In FY21, the Food Services Industry in India declined by 53% and was estimated to be worth INR 2,00,762 Cr, compared to INR 4,23,624 Cr in FY2020.
National Restaurant Association of India’s demands
- An immediate rationalisation of the current GST structure. The restaurant industry has been singled out by the removal of the input tax credit (ITC).
- The government of India should re-introduce ITC for restaurants.
- strong and equitable e-commerce policy in the food service sector.
- A uniform policy that includes single window clearance and a reduction in the number of licences required for operating a restaurant
- Government should recognise the restaurants’ increasing contribution to the economy and give it an ‘Industry’ status.