Rajasthan, India’s largest state, has passed a law imposing a tax on digital platforms, including global giants like Uber and Amazon. The tax, up to 2 percent on revenue, is aimed at funding welfare and social security for an estimated two million platform-based gig workers in the state. This move marks the first of its kind in India and comes at a crucial time with national elections less than a year away.
The Indian National Congress party, currently in power in Rajasthan, initiated this legislation, receiving support from gig worker associations. These groups have been advocating for better wages and social security benefits in recent years. Shaik Salauddin, a prominent figure in the gig workers’ union, hailed the decision, emphasizing its significance for workers long ignored by large corporations.
The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023 will establish a welfare fund for gig workers, financed through the new tax. The tax will be applied to each transaction on the platform, affecting the company’s revenue rather than customers. The fund will be allocated to various welfare schemes for platform-based gig workers.
The Act also includes the creation of a government-run database to track gig workers’ employment status and a centralized system to manage financial transactions on aggregator platforms. This system will map financial transactions using APIs shared by the companies.
The Act establishes a welfare board comprising representatives from gig workers’ unions, companies, and the state, who will collectively decide on the allocation of the welfare fund.
However, industry groups like IndiaTech have raised concerns, stating that the new law might lead to duplications in efforts already being made by app aggregators, such as providing insurance to gig workers. They also warn that the tax could eventually burden consumers, potentially reducing demand and negatively impacting gig workers.
Political implications of this law are significant, especially with the national elections approaching. The Congress party’s decision to pass this Act is seen as a message to workers’ groups ahead of the 2024 national polls.
Labour experts suggest that this legislation in Rajasthan could inspire similar laws in other Indian states. The Act aligns with the Indian constitution’s concurrent list and does not contradict the federal Code on Social Security, which also includes provisions for the gig economy.
Drawing inspiration from the 1969 Maharashtra Mathadi, Hamal And other Manual Workers Act, the new Rajasthan law represents a continuation of India’s labor history, aiming to provide dignified working rights to millions of gig workers.
Stay informed on supply chain news at The Supply Chain Report. Free international trade tools are at ADAMftd.com.
#RajasthanTax #DigitalPlatforms #GigWorkers #UberIndia #AmazonIndia #IndianNationalCongress #WelfareForGigWorkers #ShaikSalauddin #IndiaTech #WelfareFund #PlatformBasedGigWorkers #2024Elections #SocialSecurity #LaborRights #DigitalTax #GigEconomy #TaxOnUberAmazon #IndiaLegislation #RajasthanLaw #GigWorkerWelfare #WorkersRights #IndianConstitution #LaborHistory #IndiaLaborLaw
