Govt Proposes to Scrap 6% Equalisation Levy on Digital Ads in Finance Bill 2025

The Indian government has proposed to scrap the 6% equalisation levy on digital advertisements in the Finance Bill 2025. This move aims to simplify the tax regime for digital services and address concerns raised by international stakeholders. The removal of the levy is expected to reduce the tax burden on foreign digital advertising platforms like Google, Meta, and Amazon. This proposal reflects India's efforts to create a more favorable business environment for digital companies, while also addressing trade tensions with the United States.