India's Digital Tax U-Turn: 'Google Tax' to be Axed on April 1

In a dramatic policy reversal, India has decided to scrap the 6% equalisation levy on digital advertisements, informally referred to as the "Google Tax", from April 1, 2025. The decision, one of 59 amendments to the Finance Bill 2025, marks India's changing strategy on digital taxation against the backdrop of international trade pressures.

 

Points to note:

The move is India's efforts to strike a balance between local revenue requirements and global tax cooperation. The move is seen by experts as a strategic one aimed at paving the way for a more reconciliatory approach with global technology behemoths and possibly ease the US trade posture.

 

Sources: Times of India, Indian Express, CNBC TV18, March 25, 2025