KOCHI: Call it the domino effect. The aftershocks of the note ban which caused mayhem among migrant workers were also felt in the market. One of the worst hit was Broadway in Ernakulam, which counts a large number of migrant labourers among its customers. According to a survey, Broadway shop owners have been facing a dull market since November 8, 2016. Compounding the misery was the introduction of Goods and Services Tax (GST).
Jaibee C M running Chocolate Collections, a wholesale shop, said the number of retail customers has dropped considerably. “Most of my customers prefer cash transactions and not Paytm,” he said. “The digital payment was not welcomed by many retailers and sales came down.” He said GST created more trouble as tax slab got hiked suddenly forcing customers to become reluctant in buying a product.
A roadside vendor Kiran S said her profit has decreased rapidly because of GST. “I buy my dresses, lottery from wholesale dealers and have to pay GST. But I cannot claim that from my customers. So I’m facing loss,” she said. Similar concerns were raised by jewellery owner Saifudin M P, who said cash is not coming to the market as those who hold money have become unwilling to buy fearing the high tax rate. The tax hike from 5 per cent to 12, 18 or 28 per cent has decreased the money flow, he said.
He said there was a drop in sales during festivals, including Onam. However, hardware retail shop owner Venugopal Shenoy said he does not face any issues related to demonetisation at present. “The note ban crisis existed for a month and now things are back to normal,” he said. However, GST does affect sales and the market is down, he said.
A few retail shop owners selling accessories and stationery items said they switched to digital payment mode after demonetisation. They said customers are preferring card payment. When asked about the GST impact, they said it has created a confusion among the customers.