After demonetization and introduction of GST, the wholesale businesses are largely hit. This includes those who deal with plywood, hardware, construction materials, household products, etc. the All India Manufacturers Association took an initiative where inputs from various micro companies based in Chennai were compiled altogether. It expressed that the Chennai market suffers out of tax revision and charges revision made from time to time by the State and the Centre.
The National President of All India Manufacturers Organization, K E Raghunathan says they are hoping for an amendment in this year budget (2018). Though the government has seen success with GST, the benefits are not transferred to the individuals still. It has also badly hit the industries very badly. The industries are currently in a stressful state and they are being treated meagre than they should actually be. Due to the tough measures, employment is also hit.
Due to IT and tax filings, the law is getting stricter and the overall market in Chennai is also badly hit. Tax payments and bills are the prime focus for most Chennai-based companies these days. So, the cash flow is verily affected in the first week month on month.
Of course, the realty sector is in the red! Ban on sand, too high tax and negligence shown towards salaried class without any measure for tax exemption are some of the factors that has brought down flat buyers in Chennai, says CREDAI sources.