Karnataka plans 1-2% levy on aggregator platforms like Swiggy, Zomato, Uber

The levy of such a fee is part of the state govt's draft notification on Platform-based Gig Workers (Social Security and Welfare) Bill, 2024

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The Karnataka government is planning to levy a fee of 1-2 per cent on aggregator platforms like Swiggy, Zomato, Flipkart, Amazon, Uber, etc., a government source said on Friday, adding that an announcement in this regard could come following a sub-committee meeting next week.

“There is a sub-committee meeting scheduled in the coming week. A decision on this will be taken in that meeting,” the source said.

The levy of such a fee is part of the state government’s draft notification on Platform-based Gig Workers (Social Security and Welfare) Bill, 2024.

Comments from companies such as Amazon, Flipkart, Urban Company, Swiggy and Uber were not received till the time of going to press.

According to the draft Bill, the state government will establish a fund to be called “The Karnataka Gig Workers Social Security and Welfare Fund”. For this a “Platform-based Gig Workers Welfare Fee” will be charged from aggregators.

The draft Bill says the welfare fee is to be submitted to the state government at the end of each quarter.

A group comprising many top tech startups and unicorns has raised several “serious concerns” over the proposed Bill. The group has told the state government that the Bill in its current form would hurt the ease of doing business, hamper operations and increase regulatory and compliance burden on the nascent gig and startup economy, according to the source.

The group made the submission to the state government through various trade bodies such as the Confederation of Indian Industry (CII), the National Association of Software and Service Companies (Nasscom), and the Internet and Mobile Association of India (IAMAI).

(With inputs from Peerzada Abrar)

In context
 

 The state govt to establish a fund called ‘The Karnataka Gig Workers Social Security and Welfare Fund’
 

 Gig worker fee to be charged from aggregators
 

 Fee to be submitted to the state govt at the end of each quarter