Amazon and Flipkart are pushing back against a proposed Indian tax on the online e-commerce market. The two tech industries are asking the indian government to scale back the tax to be paid by third party resellers on their platforms as announced by the government in the Union Budget. Apart from Amazon and Flipkart, the proposal covers categories like drivers with cab aggregators like Uber and Ola and online food order delivery companies.

The tax would be 1 percent on every sale made by a seller on the e-commerce platforms, and it would take effect in April if approved by the country's parliament.

The Federation of Indian Chambers of Commerce and Industry (FICCI) said the tax will not help the e-commerce industry which will be affected by this new levy and create compliance issues for small firms involved in the trade.