The Internet and Mobile Association of India (IAMAI) has stated that Uttarakhand government’s move of imposing 10% tax on all ecommerce purchases is regressive and would need to be borne by customers, although it is incident on courier companies. The industry body said that it finds the amendment unconstitutional and has been imposed to ‘pander to a small section of local traders’. It also requests the government to stop imposing the tax for the benefit of consumers in Uttarakhand. (Notice on the tax, pdf in Hindi) Consumer should not be punished for using ecommerce facilities It points out that a 2006 Supreme Court judgment states that entry tax is a compensatory tax whose onus lies on the state to prove that proceeds from the tax are being used to facilitate trade and commerce for those entities on whom the tax…
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