Recommendations on Impacts of Covid-19 on business establishments.

[Jasbir Uppal]

The Covid-19 crisis has now reached a new critical phase where public health systems need to act decisively to contain the growth in new epicenters outside China.

Clearly, the main emphasis is and should be on containing and mitigating the disease itself. But the economic impacts are also significant, and many companies are feeling their way towards understanding, reacting to, and learning lessons from rapidly unfolding events. Unanticipated twists and turns will be revealed with each news cycle, and we will only have a complete picture in retrospect.

An uneasy calm is prevailing across businesses in India even as realization dawns that the outbreak has the potential to derail bilateral trade worth $87 billion. Exports from India include, footwear, organic chemicals, cotton, ores, plastic items, salts and so on. Imports range from electrical machinery, nuclear machinery, optical and medical instruments, vehicles and accessories to iron and steel. China is India’s second largest trading partner.

You have declared a complete closure for 21 days started from 25^th March 2020 and is requesting all to keep the offices, Shops & Factories closed. Also you are urging the businessmen’s to show sympathy towards the needful employees n pay them. 

We would like to understand what is our government thinking about the owners? How are they planning on supporting the business class from whom you are demanding this sacrifice? 

Because the closure has been announced and the businesses are on a total standstill how will they survive? Salaries - On, Electricity Bill - On, Taxation - On, Bank Interest - On, GST – On, PF – On, ESIC – On, Property Tax - On. There is no relief for us. We don’t mind sitting home till 30th April if these expenses are cut off. The government needs to compromise and extend the support directly and immediately to all business.

Our recommendations are mentioned below:

• All commercial electricity bills shall be cut to half for the next 3 months.

• Companies shall be allowed to retain 10 % of GST payable for next 12 months.

• Moratorium of interest payments for next 6 months.

• EMI’s to banks and NBFC to be put on hold for 6 months with no levy of interest or delayed payment.

• Employee share of the PF not to be paid by the companies but to be borne by government for a period of 6 months.

• Employee share of the ESIC not to be paid by the companies but to be borne by government for a period of 6 months.

• Property tax for FY 2020-2021 to be reduced to half for all commercial properties

The Way You Gave Interest Waiver To The Farmers During Drought Situations. This Is A drought time for us Businessmen too.

From

J S Uppal

I S Uppal

Corporate Advisors