Amazon, Flipkart seek rollback of new Indian tax on online sellers
Amazon and Walmart's Flipkart are among online retailers demanding that India scale back a proposed tax on third-party sellers on their platforms, saying the burden of compliance will hurt the fledgling industry, according to documents seen by Reuters.
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The online retail industry is braced for a possible 1% tax on each sale made by sellers on their platforms from April if the proposal is approved by parliament next month.
The tax would apply to the income of drivers on ride hailing firms such Uber and Ola as well as sales on restaurant aggregators including Zomato and Swiggy.
New Delhi expects to collect about 30 billion Indian rupees ($419.46 million) through the tax, the Finance Ministry said. It will also provide data on billions of dollars in sales.