No more ‘Google Tax’: India to end 6% levy on foreign digital ads from April 1

India is going to remove the charging of 6% equalization, which is commonly called Google Tax, Google and Meta’s online advertising services.

2016 The billed charges by Indian businesses to foreign companies taxed payments for digital advertising services.

Tax elimination comes as the scope of India’s efforts to mitigate the tension with the United States, which have previously criticized the launch and threatening response to Indian exports such as shrimps and bacteri rice. Removal is expected to benefit from technological giants, reducing advertising costs and increasing their profit margins.

“Removal of equalization is a smart step by the government, as the collections were not very high, and it was a fear of the US administration,” said Sudhir Capadia, A.M. The gesture is seen as an attempt to prevent further trade disputes and maintain a stable trading environment.

Advertising costs, such as Google and Meta, are expected to encourage more digital advertising in Indian business, further advertisers involving these platforms and promote their income. In addition, this step is likely to improve profitability for this technology companies.

The decision is also expected to invest more foreign investments in the Digital part of India. By making digital advertising cheaper, the government hopes to promote digital economy by providing growth and innovation opportunities.

Along with Levi’s removal, the government plans to withdraw previous tax benefits, which have previously accessed foreign technology companies. Before the collection disappears, these companies can still be taxed by other provisions, maintaining a balanced tax frame.

The financing bill also includes changes in the management rules of the offshore fund, which are aimed at releasing such measures for India.