The Madhya Pradesh government plans to impose 6 per cent entry tax on the e-commerce firms by amending the legislation to increase revenue.
The government, which is aiming to receive at least Rs 300 crore from the move, would introduce a bill in the upcoming Monsoon Session to amendment laws so as to bring e-commerce firms under the tax regime.
"We would bring the e-commerce firm under tax regime and impose six per cent levy by bringing a bill to amend in the monsoon session, which is going to be start from tomorrow," said Madhya Pradesh Finance Minister Jayant Malaiya.
He further added: "The business of e-commerce companies is increasing day by day and it is affecting the traditional shopkeepers, who pay us entry tax along with other levies.
"So, we have decided to bring e-commerce under the gambit of tax regime, so that there should be equal collection from both channels - traditional brick & mortar shops and e-commerce trade."
On July 5, 2016, the Council of Ministers in a meeting held under Chief Minister Shivraj Singh Chauhan has already approved to bring the amendment legislation for imposing six per cent entry tax on e-commerce.