Government to scrap equalisation levy on digital ads from April 1
By Staff Writer in Media News on Thursday, 27th March 2025 at 7:10pmFinance Minister Nirmala Sitharaman on Tuesday announced the withdrawal of the 6 per cent equalisation levy on digital advertisements, effective April 1, 2025, while moving amendments to the Finance Bill in the Lok Sabha.
The move is expected to ease the tax burden on global tech companies such as Google and Meta, potentially boosting ad spending and foreign investment in India’s digital sector.
Introduced in 2016, the levy applied to payments by Indian businesses to foreign firms for digital advertising services. It was expanded in 2020 to include a 2 per cent tax on e-commerce operators, which was removed last year following an agreement with the US. The 6 per cent levy now being scrapped was the original component.
How will this impact media sector?
The removal of this tax on di...
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