Madhya Pradesh to amend law for 6% entry tax on e-commerce firms

By: | Published: July 17, 2016 8:04 PM

"So, we have decided to bring e-commerce under the gambit of tax regime, so that there should be equal collection from both channels - traditional brick & mortar shops and e-commerce trade."

Madhya Pradesh to amend law for 6% entry tax on e-commerce firms. (Representative Image)Madhya Pradesh to amend law for 6% entry tax on e-commerce firms. (Representative Image)

The Madhya Pradesh government plans to impose 6 per cent entry tax on the e-commerce firms by amending the legislation to increase revenue.

The government, which is aiming to receive at least Rs 300 crore from the move, would introduce a bill in the upcoming Monsoon Session to amendment laws so as to bring e-commerce firms under the tax regime.

“We would bring the e-commerce firm under tax regime and impose six per cent levy by bringing a bill to amend in the monsoon session, which is going to be start from tomorrow,” said Madhya Pradesh Finance Minister Jayant Malaiya.

He further added: “The business of e-commerce companies is increasing day by day and it is affecting the traditional shopkeepers, who pay us entry tax along with other levies.

“So, we have decided to bring e-commerce under the gambit of tax regime, so that there should be equal collection from both channels – traditional brick & mortar shops and e-commerce trade.”

On July 5, 2016, the Council of Ministers in a meeting held under Chief Minister Shivraj Singh Chauhan has already approved to bring the amendment legislation for imposing six per cent entry tax on e-commerce.

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