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Equalization levy on online advertisements
March 29 , 2025
3 days
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- The recent Finance Bill 2025, which included of the 35 government amendments, eliminates the 6 percent digital tax on online advertisements.
- The Central government has proposed to abolish the equalisation levy on online advertisements, a part of amendments to the Finance Bill, 2025.
- By definition, an equalisation levy is a levy to ‘equalise’ the tax component of a resident e-commerce company as well as a non-resident e-commerce company.
- This levy, colloquially called “Google tax,” affects the online advertising services provided by offshore technology firms like Google, Meta and Amazon.
- The 6 per cent tax has been in force since 2016.
- In 2020, India had introduced a 2 per cent equalisation levy on e-commerce sites offering digital services in India and later repealed.
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