UP Government's entry tax policy done it's job but market is still recovering

Mayank Shishodia
29 Jul 2016
UP Government's entry tax policy done it's job but market is still recovering

Ghaziabad is one of the most popular cities in the NCR and also contributes a large amount of business to the IT sector in India. But for a long time it suffers a lot due to a down in market and the only cause of down was online market.

Online market created a lot of trouble for retail market; they offered a price to customer which was too low as compare to retail market.This made many retailers or sellers to shutdown their businesses due to not enough sales.

This became a major point to think for UP Government, as they do not want retailers or sellers to lose their businesses and also want E-commerce to grow but it cannot be possible simultaneously.So, they find a way which helps to control both market and regulate online market in some ways by which offline market should not be harmed.

They impose a 5% mandatory entry tax on online goods which succeeded in putting some control on online market.

This step of UP Government returns market to sellers and retailers which were taken over by online sellers. Retailers start growing once again and starts doing their businesses. This helps to fill the gap between costumers and retail sellers.

The Ghaziabad Computer Association is very happy with the decision of government, as in a interview with Arun Kakkar president of Ghaziabad Computer Association said," There is no such problems in the market now a days and it is improving day by day. The market is doing better now as entry tax is helping IT partners to maintain their margins and we are hoping that offline market will do better in the future".

But still some sellers are facing this problem, on a talk with DQ Week Sumit Sharma from Alpha Tech Computers states, “Online Shopping is big challenge nowadays, people starts shopping online & no one comes to shops. This affects his business a lot.” He added, “The big dealers who have more than one business are not much affected but dealers like him who only depends on one shop suffers a lot.”

As we know changes takes time and hope all will be good in IT market of Ghaziabad.

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