India to Abolish 6% Levy on Digital Ads

The Indian government plans to abolish the 6% equalisation levy on online advertisements starting April 1, 2025, as part of the amendments to the Finance Bill, 2025. This tax, which affected U.S. tech giants like Google, Meta, and Amazon, has been criticized by the U.S. as discriminatory. The move is seen as an attempt to ease trade tensions with the United States and to simplify tax laws in alignment with global tax policy reforms. India had already revoked a 2% levy on e-commerce transactions in 2024 under similar pressures. Experts believe this could enhance bilateral trade relations, with discussions for a significant trade deal ongoing, targeting $500 billion by 2030. The amendments are expected to pass Parliament this week, reflecting India's conciliatory stance amidst diplomatic negotiations.