Entry tax on online sale  in Himachal

Online shopping in Himachal to be costlier as Govt. mulls over imposing 5% entry tax on online sales

SHIMLA- Himachal Pradesh Government, after hue and cry from local business community and Beopar Mandals, the Assembly had passed the Himachal Pradesh Tax on Entry of Goods (Amendment) Bill 2016 in April. It was decided that tax would be imposed on all online purchases to check revenue losses caused by online shopping/trading. However, it’s been six months since passing of bill, but no such tax is imposed yet. Online transactions are tax-free and neither VAT nor entry tax is imposed on online trading.

The manufacturers and brands are not paying any tax for online trading in the State due to which Himachal is facing revenue loss of Rs 200 crore to Rs 250 crore annually, said a report in The Tribune.

Government claims that the process to decide the slab on tax is in progress. The imposed tax will be payable by courier companies in the state but eventually this additional cost due to tax will make online shopping costlier than it is currently.

The report claimed that the government was mulling to impose 5 per cent entry tax on all goods delivered in the state through online transactions and final decision will be taken soon.

Photo: Graytvinc

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