The Retailers Association of India (RAI) welcomed government's LTC cash voucher scheme and Rs 10,000 festive advance to government employees to stimulate consumer demand during the festival. The move will help retailers recover from the immense loss of business caused due to the COVID-19 pandemic. The retailers' body also hoped that the same LTC cash voucher scheme will be introduced for private sector employees as well.
According to Kumar Rajgopalan, CEO, RAI, the leave travel concession (LTC) cash voucher scheme will encourage spending on categories which attract a GST of 12 per cent or more, such as apparels, computers, consumer durables, smartphones, home appliances, furniture and home furnishings, beauty and personal care, among others.
Finance Minister Nirmala Sitharaman had announced payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy. She said the government will give its employees income-tax-exempt cash vouchers in lieu of their entitled travel allowances this year.
The cash will have to be spent on buying goods that attract 12 per cent or more GST -- a condition which eliminates the possibility of the cash being spent on food items. Additionally, the government will as a one-time measure give Rs 10,000 salary loan to all its officers and employees as a festival advance.