The government on Monday proposed to abolish the equalization fee or digital tax on online advertisements under 59 amendments in the Financial Bill 2025.
This bill was discussed in the Lok Sabha. According to experts, the proposal to remove the equalization fee on online advertisements has been brought to show a liberal attitude towards the US.
This research will greatly benefit global companies like Google, X and Meta, which earn money from digital advertising. According to this amendment, 6 percent equivalent fee has been removed. Which will directly benefit these companies.
Equality Levi is a type of tax that was introduced by the Government of India in 2016. This tax was levied on foreign digital companies. Which provides digital services such as advertising, online shopping, cloud services for Indian users.
In the Finance Bill 2025, this amendment was introduced in the Lok Sabha by Minister of State for Finance Pankaj Chaudhary.
The government had removed two percent of the equalization fee on e-commerce transactions last year. However, six percent equivalent tax continued to be imposed on online advertisements.
