Online shopping has been the preferred choice for lakhs of retail-shoppers of late. However, the growing aura of e-shopping received a major jolt in U.P. when on Wednesday, the cabinet approved 5 % entry tax to be levied on online shopping orders. This would mean that people from UP buying products online would have to pay an additional 5% on the product if they provide a U.P.’s address while ordering.
The state cabinet has levied this tax as it feels that the while delivering products in U.P., e-retailers use U.P.’s infrastructure and roads. The government aims to collect 500 crore rupees a year post imposition of this tax. However, many e-shoppers staying on periphery of the state have already made up their minds to switch to their friends and relatives address in neighboring states to bypass this tax.
This move by government is bound to be supported by lakhs of non e-business retailers whose sales are already suffering owing to online shopping boom.
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