Google tax to be scrapped; action taken after Trump's threat

 

 

The 6% Google tax (equalization levy) imposed on online advertising services by companies like Google and Meta will be withdrawn from April 1. This tax is known as the Google tax. India's move comes after US President Donald Trump threatened to impose retaliatory duties on countries that impose digital taxes on US tech companies from April 2. The government has proposed the proposal as part of the Finance Bill. The bill is currently under discussion in the Lok Sabha. If the proposal is approved by Parliament, the Google tax will not be applicable from April 1, 2025. The Google tax exemption will benefit companies that sell online advertising services, especially major US tech giants like Google and Meta.

What is the Google tax?

The Equalization Levy or Google tax was introduced in India in 2016. Its purpose was to tax the income of foreign e-commerce companies from India. The Google tax is a tax levied at the time of payment by the person receiving the service. The condition is that the company paying the tax in return for the advertisement must be foreign.