The government has proposed amendments to the Finance Bill 2025, including the removal of the 6% equalisation levy on online advertising. This tax, introduced in 2016, applies to digital ad payments made to global platforms like Google and Meta.
Removing the levy is expected to lower the cost of digital advertising in India.
The equalisation levy was introduced to tax foreign digital firms earning revenue from Indian advertisers.
The Finance Bill 2025 is expected to be discussed in Parliament soon. Further details on the implementation timeline are awaited.
