Online shopping to be become more expensive in J&K

Jammu and Kashmir News

Srinagar:  Online shopping is likely to become expensive for the residents of Jammu and Kashmir, as the government has decide to change the tax regime on goods entering into the state.

The State Government has introduced a bill in the state Assembly wherein they would seek taxes on goods entering the state through e-commerce portals with the aim to safeguard the local traders and improve the tax collection system.

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As per section three of Jammu and Kashmir Entry Tax on Goods (Amendment) Bill, 2000, it was mentioned in the Assemby by the Finance Minister Haseeb Drabu that the introduction of the bill aims to tap the changing trade practices and enhance the revenue collection on account of entry tax for the State.

According to the bill, the Entry Tax will be collected on goods whose value exceeds Rs 5000.

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Online shopping has become the trend these days being the ideal one-stop shopping destination for everyone. Consumers prefer buying goods from various companies delivering at their doorstep through these online portals. With strict tax laws implemented, online shopping lovers are likely to be having a hard time in near future.

The Finance Minister elaborated his statement of reasons and objects saying that the statistics collected from the minor checkposts show that most of the consignments are shown below Rs 5000 and hence no entry tax can be levied. In case of the passenger side minor checkpost at Jammu Railway Station only, per day billing of consignment below the value of Rs 5000 is Rs 15-18 lakhs.

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Further, he added that the local trade is struck by such transactions and the dealers dealing in sale and purchase of mobile phones had approached Commercial Taxes Department and represented that the online invoices being competitive have taken over the market as they do not pay any tax and incur any other incidental expenses.

Also, it is apprehended that the online delivery is split into several bills so as to reduce the value of invoice to avoid entry tax.

The State Government would profit from this scheme as additional revenue would be generated on account of entry tax of about One Lakh per day, which would become Rs 30 Lakhs in a month and Rs 3.5 Crore per year from the passenger side itself.

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Huge quantity of such online goods is cleared at airports of Jammu and Kashmir and at Lakhanpur, bordering Punjab. These resources need to be trapped looking into the changing trade practices of the companies.

The minister said that many big business houses are in a process of resorting to the same kind of trade practices which would further give a jolt to “our tax-collection”.

The amendment bill is required to be put for discussion and voting before it overhauls the existing law.


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