Folks in Karnataka, we come bearing bad news! If online food deliveries weren’t already an expensive affair; GST, delivery partner fee and platform fee, we’re looking at you! They are on the run to become even more expensive as the Karnataka government may impose a 1-2 per cent additional transaction fee on a range of delivery aggregator platforms. Read on to know more.
Karnataka Govt To Charge Transaction Fee On Delivery Platforms
As per a report by Moneycontrol, the Karnataka government will soon impose a 1 to 2 per cent additional transaction fee on aggregator platforms like Swiggy, Zomato, Urban Company, Uber, Ola, Amazon and Flipkart, among many others. This additional transaction fee will be then directed to the welfare board to provide social security benefits to gig works involved in delivery services on these platforms.
The report further states that the state government will introduce social security measures to delivery personnel or gig workers. And this cess is a part of the proposed “Platform-Based Gig Workers (Social Security and Welfare) Bill”, 2024. While the platforms will collect the fees it will be passed on to the welfare board. So, the companies will not profit from this additional transaction fee,
So, while companies won’t pocket these fees, it certainly means that online food, products or even porter deliveries are set to become more expensive for consumers. It will especially affect their ordering habits. In June 2024, the Karnataka government announced the draft bill. A senior state government official revealed to Moneycontrol that they are planning to collect a welfare fee on every transaction. And this cess will range from 1 to 2 per cent which will be first collected by the platforms and then directed to the welfare board.
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Bill To Be Discussed On Oct 24
This additional transaction fee will cover a wide range of platforms including Porter, Dunzo, Zepto and Rapido. It will apply to food delivery, grocery delivery, ride-sharing, logistics, e-marketplaces, logistics and more. The revenue collected by the state government will be used to fund social security programmes for gig workers like insurance and healthcare.
On October 24, the Karnataka cabinet will discuss the bill which may be introduced in the winter session of the state assembly in December this year. Instead of charging a fee based on the company’s turnover, a per-transaction fee will be charged.
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Folks in Karnataka, what do you think about this additional transaction fee?
Cover Image Courtesy: Canva Pro (Picture used for representation)
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