Madhya Pradesh govt to impose 6% tax on all online purchase of goods

The Madhya Pradesh government has decided to impose a 6-per cent tax on all parcels coming into the state from within the country or overseas through online transactions, the government said.

This will help increase the state's revenue while also bringing everything in the tax bracket, an official release stated.

State finance minister Jayant Malaiya was quoted a saying, "Madhya Pradesh government will soon impose 6% tax on online shopping. This will be imposed on the items we get here through transporters. All the online shipments will be put under supervision, whether it's within the country or from abroad," 

"The motto here is to put all the tax-free things in the tax bracket and work towards the benefit of those who suffer losses because of selling commodities that attract taxes," he said.

Malaiya also said the initiative came as a response to the losses suffered by the government due to the constant proliferation of the internet-based retailers like Amazon, Flipkart, etc.

"This has been followed in many other countries and now when Indian government has also taken it under consideration, suitable measures have been taken to entail it effectively,'' he added.