The Karnataka authorities is planning to impose extra cess on each transaction on aggregators platforms like Zomato, Dunzo, Swiggy, Zepto, Ola and others. Karnataka Labour Minister Santosh Lad mentioned the funds collected shall be allotted to the Welfare Fund for Gig employees.
Karnataka Labour Minister Santosh mentioned: “The Labour division of Karnataka has determined to impose cess on each transaction on aggregators platforms like Zomato, Dunzo, Swiggy, Zepto, Ola and others such. The Cash which shall be collected shall be used for the Welfare fund for Gig employees. We’re not charging for merchandise or items which customers buy, wit shall be charged solely on transport.”
The state authorities’s draft notification for the Platform-based Gig Staff (Social Safety and Welfare) Invoice, 2024 consists of the implementation of a payment. This payment, known as the “Platform-based Gig Staff Welfare Payment”, shall be levied on aggregators with a purpose to set up “The Karnataka Gig Staff Social Safety and Welfare Fund”.Â
The invoice will embody aggregators providing a spread of companies together with ride-sharing, meals and grocery supply, logistics, e-marketplaces, skilled companies, healthcare, journey and hospitality, content material, media companies, and extra. Based on the draft Invoice, aggregators are required to submit the welfare payment to the state authorities on the finish of every quarter.Â
As soon as the invoice is authorized, the platforms will acquire the payment and switch it on to the welfare board. Though the businesses won’t revenue from this alteration, clients could also be discouraged from putting frequent orders as a consequence of a small enhance in prices starting from 1-2%.
Earlier, NASSCOM had raised issues about sure provisions within the gig employees’ invoice, noting that they might have a adverse affect on aggregator companies. IAMAI additionally expressed their reservations concerning the draft regulation, citing potential obstacles to enterprise operations and the state’s ease of doing enterprise rating. Contrarily, IFAT and Vidhi Centre for Authorized Coverage, together with different Unions, welcomed the invoice.
The labour division clarified that there could be no double taxation for gig employees. Aggregators had objected to the division’s choice, arguing that gig employees are already lined below the Union authorities’s Code on Social Safety, which features a social safety fund funded by aggregator contributions starting from 1% to 2% of annual turnover, with a cap at 5% of funds to employees. Regardless of this, the Karnataka labour division maintained that there could be no duplication of taxes.
