Stagnancy has hit the manufacturing sector in the domain of gifts due to high development costs of moulds etc. Inputs have become costlier than the finished goods and are not fetching the due price. Tough competition from imported products especially from those who import through illegal means is another challenge, he revealed. Monotony and saturation prevails in the imported products’ sector, too.
This is an economic cycle, which comes once in a decade and hopefully this too shall pass, gifting industry professional, Mr Manoharlal B. Narang hoped while giving a talk in a discussion session organized by Giftex.
Signifying the importance of B2B platforms and exhibitions like Giftex, Mr Narang stated that they were a must to promote the products, as it was easier to bring the prospective customers from different business, social, and cultural fields under one roof rather than approaching each one individually as they could display our range without carrying the entire product portfolio to them.
He added, “Today approaching prospective customers with physical samples is an expensive affair as travel & transportation costs have risen vertically due to escalation of fuel prices, so Giftex is a very viable and cost effective platform to showcase their products. Advertising on print media or television is no more affordable for small gifting industry entrepreneurs. Exhibition is the best source of advertisement.”
He also took the opportunity to raise the issue of VAT/Sales tax, which genuine registered dealers are facing, especially double payment of VAT plus penalty and interest due to default in case of some registered dealers failing to pay VAT to the government treasury that they collected from dealers. The industry players should take legal recourse collectively to fight this law, as they were paying VAT to the registered sales tax dealers to collect it from them and deposit the same in the treasury.
“Then why are the honest tax payers being compelled to make double payment instead of action being taken against the defaulting dealers?” Mr Narang questioned, mentioning that the section 28(5) in the relevant law has created a major hassle for the business community, and that he was pursuing the matter with the present as well as ex presidents of Maharashtra STPA. He gave a call to all the dealers to fight for their rights along with the Commerce & Mercantile Federations.
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