Most Americans make a trip to a large grocery store when they want to purchase fruit for their families. Some go to a farmer's market or an orchard or farm. In Chennai, India, many people purchase fruit from a small fruit stand, often found in an open air market or a stand set up along a busy street.
Sankar and his wife, Syamala, have worked selling fruit in their own fruit stand business for years. Despite their experience and expertise, they have always struggled to find enough capital to buy more fruit at the wholesale market in Chennai, and expand their business. One of our TIFs, John, knows Sankar and decided to loan him the funds to solidly improve his fruit stand. Thanks to John and OneIN, Sankar is well on his way to improving his fruit selling business and supporting his family even more effectively!
Goods and Services Taxes
People all over India pay a new voluntary tax when they purchase things. This tax is called the Goods and Services Tax. It charges the consumer a percentage of the cost of an item. Different items are taxed different percentages. For example, the governent charges an 18% tax on soaps but a 28% tax on detergents. Services are also charged taxes.
This tax, launched in a historic midnight session of Parliament June 30/July1, 2017, has caused very high and unpredictable prices in the marketplace. People have begun to buy less since the cost is higher than it used to be and they cannot afford to spend like they did earlier.
This tax not only affects the consumer but also small businessowners. Higher taxes and less purchasing by the community leads to low profits for our businessowners, many of whom already struggled before the tax was levied.
Keep these business people and their clients in your prayers as they continue to face higher prices and lower profits.