wordpress blog stats
Connect with us

Hi, what are you looking for?

, , ,

Traders’ body wants 5% tax on e-commerce players

taxes, calculator

The Federation of All India Vyapar Mandal (FAIVM), a pan-India body of traders and retailers, has recommended that the government impose a tax of 5% on e-commerce companies such as Amazon and Walmart-owned Flipkart. FAIVM, which claims to represent 2 crore traders across more than 18 states, said that the traders’ community is going through “a miserable state after demonetization and complex GST”. Online e-commerce has further fueled the question of survival for the nation’s brick and mortal trade, it said in a Budget wishlist released on January 4.

“To curb online business, the government should bring a law and impose a special tax at the rate of 5% on online sales so that small shopkeepers can survive,” the traders’ body said. The body has a presence in over 18 states, including in Delhi, Gujarat, Maharashtra, Andhra Pradesh, and West Bengal and Northeast India.

VK Bansal, the organisation’s national general secretary, explained that there is huge investment required in setting up a brick-and-mortar store, but a vendor listing on Amazon technically does not have to incur significant cost. Earnings can now be made online, without substantial investment, thus ruining a balance between retailers, he explained. Traditional marketplaces need to be sustained for employment generation, he said. Although the government cannot change consumer behaviour, it can create a balance through levies and policies, Bansal added. 

When asked about how the 5% rate was arrived at, Bansal said it has no logic, but introducing this nominal amount of tax to begin with will create a sentiment that the government supports traditional retailers, he said, adding that it will also bring some extra revenue to the government. 

Registered in 2017, FAIVM’s stated objective is to liaison with central and state government and local bodies for the benefit or traders, manufacturers, hawkers, and service providers; to influence relevant legislation, among other things. Jayendra Tanna from Gujarat is the current national president.

Advertisement. Scroll to continue reading.

The organisation said it has lobbied the government to waive Merchant Discount Rate (MDR) on digital payments and played a “major role in formulation policies for e-commerce”.

Also read:

Written By

I cover health, policy issues such as intermediary liability, data governance, internet shutdowns, and more. Hit me up for tips.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...

News

Releasing the policy is akin to putting the proverbial 'cart before the horse'.

News

The industry's growth is being weighed down by taxation and legal uncertainty.

News

Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.

News

Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ