Karnataka to impose cess on Zomato, Uber, payments to support gig workers

The Karnataka government said it will impose a cess on transactions conducted through aggregator platforms like Zomato, Ola, Uber, Swiggy and others to provide social security to gig workers.
While addressing a press conference, Karnataka Labour Minister Santosh Lad said, “The money that will be collected will be used for the welfare fund for gig workers. We are not charging for products or goods that consumers purchase; they will be charged only on transport.”
“They are vulnerable to road accidents. As they spend more time on roads, they inhale polluted air, leading to various health issues. We want to ensure that the welfare fund is used for health insurance and the education of their children,” he said.
The state government has already drafted a bill to protect the rights of platform-based gig workers. As per the draft, the bill intends “to place obligations on the aggregators in relation to social security, occupational health and safety, and transparency.”
The Bill will be passed in the state Assembly in December.
The Karnataka government’s announcement came a day after Union Labour Minister Mansukh Mandaviya chaired a meeting with employee associations of gig and platform workers to provide millions of such workers with social security benefits like health insurance and pension.