India is set to scrap a 6% equalisation levy on digital advertisements that targeted primarily U.S. companies such as Google and Meta. This decision is part of amendments to the Finance Bill 2025 and aims to mitigate U.S. concerns amid threats of reciprocal tariffs by President Trump. The move aligns with ongoing trade negotiations to bolster a trade agreement aiming for $500 billion in bilateral trade by 2030. Analysts suggest this represents relief for tech companies and a step towards reducing trade friction with the U.S.
The decision to abolish the 6% equalisation levy on digital ads reflects India's effort to alleviate trade tensions with the U.S. and foster better relations.
India's move is significant for U.S. tech giants like Google and Facebook, marking a strategic shift in its approach to digital taxation amid ongoing trade negotiations.
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