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Indian Trade Body Ends All Business with Pakistan, Calls for E-Commerce Tax Reforms

The Confederation of All India Traders halts trade with Pakistan citing national security and urges stricter regulations on digital commerce.

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Overview

  • CAIT unanimously decided to cease all imports and exports with Pakistan, condemning the Pahalgam terror attack as the catalyst for the resolution.
  • The decision was made during a national governing council meeting in Bhubaneswar with over 200 trade leaders from 26 states in attendance.
  • Trade between India and Pakistan had already declined significantly, dropping from nearly USD 3 billion in 2018 to USD 1.2 billion by 2024.
  • CAIT called on the government to impose a 28% GST on e-commerce and quick commerce transactions, arguing their convenience should be taxed as a luxury.
  • The body also accused digital commerce platforms of regulatory violations and demanded stricter enforcement of e-commerce policies, consumer protection laws, and FDI rules.