In a bid to increase its revenue generation, the Madhya Pradesh government has decided to impose 6 percent entry tax on e-commerce firms and plans to amend the legislation in this regard.
The government estimates to receive at least Rs 300 crore from the move. The bill to bring e-commerce firms under the tax regime will be introduced in the upcoming monsoon session.
“We would bring the e-commerce firm under tax regime and impose 6 per cent levy by bringing a Bill to amend in the monsoon session, which is going to start from tomorrow,” said Madhya Pradesh Finance Minister Jayant Malaiya.
The government claims that the move will safeguard traditional shopkeepers and will bring all commercial establishments under the ambit of the tax regime, which was applied only on offline establishments along with other levies.
The Council of Ministers in a meeting held under Chief Minister Shivraj Singh Chauhan has already approved to bring the amendment legislation for imposing 6 per cent entry tax on e-commerce.