Karnataka Government Mulls Over Additional Charge on Amazon, Ola, and Zomato to Aid Freelancers
The Karnataka government is contemplating the introduction of an extra charge on digital transactions made through platforms like Amazon, Ola, and Zomato in an effort to bolster social support benefits for freelancers in the gig economy. This move comes as the gig economy experiences a surge in activity in Karnataka, with an estimated 300,000 freelance workers currently active in the state. With this growing workforce representing a significant group of potential voters, their welfare has gained increased importance, particularly with the upcoming Lok Sabha elections scheduled for early next year.
Second only to Rajasthan, Karnataka seeks to become the second state to implement an additional charge on online transactions, with the funds generated specifically allocated towards the well-being of gig workers. Under the leadership of the Congress party, Rajasthan has already implemented such a charge, levying up to 2 percent on transactions and utilizing the proceeds to fund a welfare fund overseen by a board comprising representatives from workers, industry, and the government.
The Labour Minister of Karnataka, Santosh Lad, revealed that the government is actively exploring the possibility of imposing an extra service tax to support welfare programs for gig workers. Moreover, state authorities are considering the establishment of a welfare board for transportation workers, which may involve the implementation of a levy to finance their welfare schemes. There are also discussions surrounding the integration of gig workers into this board.
In the fiscal year 2023-24 budget, Chief Minister Siddaramaiah had laid out proposals for a comprehensive welfare scheme, including a Rs four-lakh accident and life insurance package for workers. Ahead of the Karnataka assembly elections, a group of gig workers engaged with Rahul Gandhi, leading to the inclusion of a dedicated welfare board for gig workers in the Karnataka Congress manifesto. To kickstart this initiative, an initial allocation of Rs 3,000 crore has been planned.
The consideration of an additional charge on prominent digital platforms intends to bolster the social support benefits provided to freelancers in the gig economy. By directing the proceeds towards welfare programs and establishing dedicated welfare boards, the Karnataka government aims to enhance the overall well-being of gig workers. This move signifies the growing recognition of the gig economy’s significance and the need to address the specific challenges faced by this sector. As the government deliberates on the implementation of this charge, future announcements will shed light on the potential impact it may have on freelancers in Karnataka.
In conclusion, the Karnataka government’s plan to levy an extra charge on transactions carried out through platforms like Amazon, Ola, and Zomato reflects its commitment to improving the social support available to freelancers in the gig economy. With the gig workforce expanding in Karnataka, this move aims to address the specific needs of gig workers and ensure their welfare. As the government explores the implementation and impact of this additional charge, the upcoming Lok Sabha elections will likely shape the final decision. The dedication of funds to welfare boards showcases the government’s recognition of the importance of supporting gig workers and the potential for further developments in India’s gig economy.
