Madhya Pradesh levies ‘entry tax’ for e-commerce companies


E-commerce may have gained immense popularity in India in recent years with more and more people relying on the websites for their shopping requirements.

But, there was a bad news for e-retailers in Madhya Pradesh after the state finance minister, Jayant Malaiya, announced in the budget the government’s intention to impose an entry fee of six per cent on goods in view of revenue loss due to e-commerce.

According to reports, the e-commerce business has experienced a boost by 20-30 percent in the recent years. But the e-commerce companies did not not require to pay any any additional tax in the state.

Gujarat, Assam, Uttrakhand and Kerala have already decided to impose entry fee for e-retailers in their states.