The government of India is mulling the removal of 6% equalisation levy imposed on online advertisements from April 1, as per reports. The decision comes at a time when Trump’s retaliatory tariffs against India are set to hit on April 2 onwards.
#NewsFlash | #Government proposes major amendments to #FinanceBill2025, removal of 6% equalisation levy on online advertising to reduce tax burden on #Indian consumers and lower costs for advertising on global platforms like #Google, #Meta, and more pic.twitter.com/QnrGa0bvWp
— CNBC-TV18 (@CNBCTV18Live) March 24, 2025
The provision is included in the 59 amendments proposed in the Finance bill 2025. The Bill states that the removal of 6% equalisation levy, commonly known as ‘Google Tax’ in India, will reduce the tax burden on consumers of digital advertising in India.
The cost of advertising on global platforms like Meta, Google etc will get reduced with the removal of the levy.
The 6% equalisation levy on online advertising came into effect from 2016. The proposed Finance Bill was moved by Finance minister Nirmala Sitharaman on Monday.
