JOIN USChief Minister Siddaramaiah has come under intense pressure, including from his own party leaders, to resolve the issue of e-commerce businesses in the State.
The State Commercial Taxes department had recently issued notices to the dealers partnered with Amazon company, for payment of tax. The dealers had been selling their products on the company’s online platform.
Former union minister and Congress MP from Chikkaballapur M Veerappa Moily has in a recent letter to Siddaramaiah sought his intervention in the issue and asked him to find a way out to promote e-commerce businesses in the State. Moily has also warned that companies doing e-commerce businesses may shift to the neighbouring Maharastra due to obstacles. Moily, however, has not named Amazon.
“I am told that the business of e-commerce is getting into some problem in Karnataka. E-commerce has been doing good business at Hoskote and Doddaballapur in the State. I understand that e-commerce industry in Karnataka is facing certain setbacks and consequently it has caused bitterness particularly to sponsorers,” he stated.
The e-commerce industry supports and helps small and medium sellers to expand their business by providing pan-India reach. This reduces the capital cost of building a supply chain on part of small sellers. A number of products are being sold through these platforms. Many of the international players have, therefore, evinced interest in e-commerce industry in Karnataka, he added. AICC General Secretary and incharge of Karnataka Digvijay Singh had in his recent visit to Bangalore asked the chief minister to take steps to resolve the issue.