Amazon, Flipkart challenge new Indian tax on online sellers

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Amazon, Flipkart challenge new Indian tax on online sellers
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Amazon and Walmart's Flipkart are among online retailers demanding that Ind...

NEW DELHI - Amazon and Walmart’s Flipkart are among online retailers demanding that India scale back a proposed tax on third-party sellers on their platforms, saying the burden of compliance will hurt the fledgling industry, according to a document seen by Reuters.

The move is part of a broader plan by Prime Minister Narendra Modi’s government to increase tax revenues and counter a sharp economic slowdown due to weakening consumer demand. Amazon declined to comment. A spokesman for Bengaluru-based Flipkart said it was working with industry chambers to voice sellers’ concerns and highlight the increased cost of compliance.Some third-party sellers are also pushing back against the tax, arguing it would negatively impact their working capital, adding that they already contribute to a nationwide sales tax.

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