Karnataka mulls additional fee on digital transactions for gig workers' welfare
In a calculated maneuver aimed at amplifying social benefits for gig economy workers, the Karnataka administration is contemplating imposing a additional fee on digital transactions conducted through prominent platforms like Amazon, Ola, and Zomato.
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The gig economy has witnessed a substantial upswing in Karnataka, boasting an estimated 300,000 gig workers within the state. This burgeoning workforce has transformed into a significant voter constituency, lending considerable gravity to the forthcoming early-year Lok Sabha elections.
In line with a recent newspaper report, Karnataka could soon follow the precedent set by Rajasthan, becoming the second state to roll out an extra charge on online transactions specifically earmarked to amplify the welfare of gig workers.Â
The government in Congress-led Rajasthan has already incorporated a fee of up to 2 per cent on transactions, channeling the generated proceeds into a welfare fund managed by a board representing workers, industry players, and government officials.
Santosh Lad, the Labor Minister for Karnataka, conveyed told the Times of India that the administration is actively investigating the feasibility of imposing an added service tax to fuel welfare initiatives targeting gig workers.
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State authorities have hinted at the contemplation of a welfare board tailored for transport workers, potentially encompassing the gathering of a levy to finance their welfare undertakings. The possibility of integrating gig workers within this same board is presently under scrutiny.
In the financial year 2023-24 budget, Chief Minister Siddaramaiah had unveiled a comprehensive welfare blueprint, spotlighting a 4-lakh-rupee accident and life insurance package for workers. Leading up to the Karnataka assembly elections, a segment of gig workers engaged with Rahul Gandhi, a development that resonated within the Karnataka Congress manifesto.Â
The manifesto outlined the creation of a dedicated welfare board for gig workers, accompanied by an initial allotment of 3,000 crore rupees to kickstart the initiative.
