The new law passed in Rajasthan, India, imposing a tax on revenue earned by digital platforms operating in the state has elicited mixed reactions, reports Al Jazeera on July 27. Gig workers in the state have welcomed the move, as it is a significant step towards providing them with welfare and social security benefits, which have been lacking for the majority of gig workers in India's informal sector. The law establishes a welfare fund that will be funded through the tax, aimed at benefiting platform-based gig workers.
The Act also introduces a government-run database of gig workers and a centralised tracking system for financial transactions on aggregator platforms. Additionally, it establishes a welfare board with representatives from gig workers' unions, companies, and the state, which will decide how the welfare funds are to be spent. This approach has been praised by labour experts and researchers as unique and potentially effective in addressing gig workers' concerns.
However, industry groups have expressed concerns that the tax could lead to higher costs for consumers and potentially affect demand for services, which could be counterproductive for gig workers' welfare in the long run. They argue that some app aggregators already provide accident and health insurance to gig workers free of charge, and the tax may duplicate these efforts.
The passage of the Act also holds political significance, as it sends a message to gig workers ahead of the national elections. It reflects the Congress party's efforts to address workers' rights and gain support from the growing gig worker vote bank.
It is important to note that the Act does not contradict or override any federal laws, including the Code on Social Security, which has provisions for social security funds for gig workers but has not been implemented yet. The Act takes inspiration from a historical labour law in Maharashtra and is seen as a continuation of India's labour rights history.
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