India decided to abolish 6% tax for digital advertising, which will simplify the work of US IT giants like Google and Amazon. This was stated by the Minister of Finance Nirmala Sitharaman, presenting changes in the tax law.
This decision takes effect on April 1, 2025 and has become part of an effort to minimize trade disagreements with the United States. Washington previously criticized taxes, called it discrimination, because it only affects foreign companies. President Donald Trump threatened to introduce tariffs again from April 2, which caused concerns between Indian exporters.
The tax requires foreign companies to place ads in India to pay 6% of the State's income. Indian companies working in the same field have been released from this fee, making us dissatisfied.
The abolition of taxes is one of the steps to sign the transaction agreement between India and the United States, which was agreed upon the visit of Prime Minister Narendra Modi to Washington. It is expected that by 2030, revenue between countries will reach $ 500 billion.