India to Remove 6% "Google Tax" on Foreign Tech Firms Starting April 2025

Last Updated Mar - 25 - 2025, 02:43 PM | Source : Fela News

India will scrap the 6% equalisation levy on online ads from foreign tech giants like Google and Meta, effective April 1, 2025, to improve trade relations with

India is set to remove the 6% equalization levy, or "Google tax," on online advertising services provided by foreign tech firms like Google and Meta, effective from April 1, 2025. This move aims to improve trade relations with the US, which had criticized the tax and threatened retaliatory tariffs. The tax, introduced in 2016, was designed to ensure foreign tech companies contributing to India's economy pay taxes despite lacking a physical presence.

Experts believe the tax removal will benefit tech giants by reducing advertising costs for Indian businesses and boosting profit margins. It may also encourage more foreign investment in India’s digital economy and attract additional advertisers to digital platforms. The government plans to replace the levy with other taxes on foreign tech companies.

The Finance Bill also proposes changes to offshore fund management rules to make it easier for offshore funds to operate in India, addressing business concerns.