- विज्ञापन -
US President Donald Trump has warned of imposing retaliatory tariffs on several countries, including India from April 2. But before that, the Indian government is going to take a big step. The government is proposing to remove the 6% parity levy imposed on online advertising services.
Let us tell you that this tax is imposed on companies like Google and Meta. It is commonly known as the ‘Google tax’. The government is thinking of removing it from April 1. This means that this tax can be removed a day before Trump’s tariffs come into effect.
It is believed that this step is being taken to please Trump. Trump had threatened that if any country imposes a digital tax on American technology companies, they will impose retaliatory tariffs on them from April 2. Finance Minister Nirmala Sitharaman introduced 59 amendments to the Finance Bill in Parliament on Monday. This provision is included in those amendments. The proposal to remove the parity levy has come during the trade agreement negotiations between India and the US.
India wants to avoid potential reciprocal tariffs that will come into effect on April 2. The government has also proposed to remove exemptions given to these companies under the Income Tax Act in lieu of equalization levy. EY Senior Consultant Sudhir Kapadia said that removing the equalization levy is a good move by the Indian government as it was not generating much revenue and was also proving to be a major setback for the US administration.
