Annamalai Calls for MDR Exemption for Retail Traders

Annamalai Calls for MDR Exemption for Retail Traders

Mangalore Today News Network

Udupi, Oct 25, 2026: Former IPS officer K Annamalai has urged the Centre to exempt small and retail traders from Merchant Discount Rate (MDR) charges on UPI transactions, similar to tax concessions extended to corporate companies.

Speaking at an interaction organised by the Udupi Mobile Retailers Association at Town Hall on Saturday, Annamalai said the ₹15,000 crore collected through MDR charges was relatively insignificant compared with the Centre’s ₹50 lakh crore budget. He urged the government to balance its policies and provide relief to retail traders.

He called for greater support for the retail sector, warning that the decline of local businesses could affect employment and the local economy. He also expressed concern over foreign investment in large corporate companies, saying excessive dependence on foreign businesses could pose long-term risks.

Referring to the ‘Make in India’ initiative, Annamalai said the country should now focus on ‘Make for India’ by strengthening domestic manufacturing. Citing China’s economic growth, he stressed the need to encourage local production and reduce dependence on foreign companies.

Livelihoods over tax revenue
Annamalai said retail businesses generated local employment, strengthened communities and contributed to regional economic growth. The government should recognise that people’s livelihoods were as important as revenue and taxation, he said, urging the Finance and Commerce ministries to work together to support small traders.

He added that while retail trade helped circulate money within the local economy, profits earned by large corporations could flow abroad, limiting the benefits to local communities.

Calls for accountable governance
Criticising the functioning of municipal bodies and corporations, Annamalai said poor management had left many civic institutions struggling to maintain basic sanitation. Politics should focus on responsible governance and development rather than competition over announcing freebies, he said.

He also called for balanced development across Karnataka, urging greater attention to districts such as Udupi instead of concentrating growth in Bengaluru.

Annamalai stressed the need to elect capable representatives to local bodies who could address public safety, healthcare and sanitation. Political parties, he said, should demonstrate the development work completed in their wards and villages rather than merely publicising visits by political leaders.

Observing that Udupi had an educated and skilled population but had not attracted enough major companies, he urged elected representatives to work towards developing the district into a knowledge hub.