India’s Plans to End Digital Tax Seen as Benefit to Local Firms

India’s plan to withdraw its tax on digital services is a welcome step for global technology companies like Google’s parent Alphabet and Meta Platforms, as well as for Indian companies and startups using these services who were ultimately bearing the costs, according to tax advisers.

India finance minister Nirmala Sitharaman proposed March 25 to remove its 6% equalization levy in an amendment to the 2025 finance bill presented in Parliament. The removal is being proposed “so that we can address the uncertainty in the international economic conditions,” Sitharaman said.

The levy’s removal could potentially help appease US President Donald Trump, ...