New Delhi: Amazon has challenged the ‘entry tax’ levied by the Gujarat state government in a lawsuit filed in the Gujarat High Court.
This is not the first time when an e-commerce giant has filed a case against the entry tax, previously Flipkart filed a case in the same court.
Amazon acts as a facilitator between buyers and sellers on the portal. A spokesperson said that the e-commerce giant does import nor act as the consumer.
Also, the company has nothing to do with the goods, which is the only reason tax shouldn’t be charged.
However, Gujarat government has a different take on this. The government believes that this tax will protect offline retailers from discounts that online sellers offer.
Besides Gujarat, there are states that change entry tax on e-commerce companies.
The states include Uttar Pradesh, Assam, Odisha, Rajasthan, Uttarakhand, West Bengal and Mizoram also levy entry taxes.
These taxes have caused a lot of e-commerce companies to stop delivering products from other states in many of those states.
Currently, entry tax by governments of UP is 5 per cent, Rajasthan charges 5.5 per cent and Uttarakhand 10 per cent.