Chandigarh: Former Chief Minister and Leader of the Opposition Bhupinder Singh Hooda on Thursday said that the fees levied on UPI payments represent a new inflationary blow to the common man. “The BJP government is misleading the public by claiming that this will not burden the customer; however, the reality is that whenever merchant fees are imposed, the burden invariably falls on the customer,” he stated. Hooda cited the example of taxes and various fees levied on petrol and diesel; oil companies never pay these themselves, and ultimately, the customers have to foot the bill. That is why the general public ends up paying 40–50 percent in taxes on fuel. Similarly, petrol pump operators do not pay card payment charges themselves; instead, they recover the cost from the customer under the guise of a “fuel surcharge.”
He said jewelers add a “card surcharge” to the bill to offset the 1.5–2 percent MDR (Merchant Discount Rate) payable to banks. IRCTC, cinema halls, and travel apps collect payment gateway charges from passengers under the label of “convenience fees.” Many shopkeepers refuse card payments for small bills to avoid processing costs, effectively forcing customers to make larger purchases. Restaurants and large stores, despite it being illegal to directly add MDR to the bill, recover the amount from customers by imposing a 5 percent “service charge.”
“The same scenario will play out with UPI fees. Traders and large merchants will add this 0.4 percent charge (or the maximum cap of ₹300) to the bill. Expenses such as school and college fees, rations, medicines, clothing, and daily purchases will become costlier,” he said.
“The claim regarding an exemption for small traders on transactions up to ₹1 lakh is merely on paper; the goods they procure from suppliers will already have the UPI payment fee factored into the price, meaning customers will ultimately pay more for those items,” he added.
Hooda remarked that the government, which championed the “Digital India” slogan, is now imposing taxes on the very system that the common man had adopted precisely because it was free of cost.
“Imposing fees on that system now amounts to a direct betrayal of the public. The Congress demands the immediate withdrawal of these fees. Instead of devising new ways to burden the common man with the impact of inflation, the government should seek avenues to provide relief,” he demanded.
