The Kashipur Distributors Association has opposed a proposed 0.4% charge on digital transactions and called for the government to review the plan before its scheduled implementation from 15 October.
The objection was raised during the association’s meeting on Sunday. Representatives said digital payments are widely used across the distribution, retail and wholesale trade, so any added cost could affect a large number of businesses.
Why the association is objecting
Arvind Gupta, the association’s Kumaon in-charge and state vice-president, said the organisation does not support the proposed charge. He pointed to the difficulties already facing distributors, including a slowdown in the market, competition from online business and low profit margins.
According to the association, these conditions leave traders with limited room to absorb another transaction-related expense. The concern applies not only to distributors but also to retailers and wholesalers who use digital payment channels in their regular business activities.
Association president Mukesh Agrawal said retailers and wholesalers also depend on digital payments. He said managing an additional charge would be difficult for them and asked the government to reconsider the proposal related to UPI payments.
State media in-charge Shubham Singhal said the government should design a system that does not transfer the extra cost of digital transactions to traders. The association’s demand is focused on preventing such payments from increasing the operating burden on businesses.
Members present at the meeting
Those present included Amit Jain, Mukesh Agrawal, Rachit Agrawal, Sachin Singhal, Sachin Agrawal, Ashutosh Sharma, Vijay Agrawal, Sanjeev Agrawal and Ashish Tandon.
The association has not announced any alternative payment arrangement in the available details. Its immediate request is for the government to reconsider the proposed 0.4% charge before 15 October.
Conclusion
The Kashipur Distributors Association wants the proposed digital transaction charge reviewed, warning that distributors, retailers and wholesalers may find the added cost difficult amid market slowdown and low margins.
Frequently Asked Questions
Q. What is the Kashipur Distributors Association opposing?
The association is opposing a proposed 0.4% charge on digital transactions.
Q. From when is the proposed charge expected to apply?
The proposed arrangement is scheduled to begin from 15 October.
Q. Why are local traders concerned about the proposal?
They are already dealing with a market slowdown, online business competition and low margins.
Q. Which businesses use the digital payment channels mentioned by the association?
Distributors, retailers and wholesalers use digital payments in their business transactions.
Q. What has the association asked the government to do?
It has asked the government to reconsider the proposal and prevent the extra digital transaction cost from falling on traders.
