After facing protests from local retailers, UP Government has imposed an entry tax of 5% on the e-commerce players. This will clearly mean that the buyers will now have to pay an extra 5% after purchasing from the online sites.
The move has been made so as to benefit the local retailers.
This rule will help the Government to collect upto Rs 500crore tax as the annual e-commerce trade mounts to Rs 10,000 crore in the state.
Entry tax has also been imposed by West Bengal, Uttarakhand and Bihar. [source]