1/4/2025, 2:01:03 pm

Abolishing Equalisation Levy may cost Centre over Rs 3k cr in revenue loss

The removal of India's 6% Equalisation Levy on online ads, effective April 1, 2025, is expected to cause a Rs 3,000 crore revenue loss in FY26. This decision benefits global tech firms like Google and Meta by reducing their tax burden. The levy was phased out as part of India's commitment to the OECD's 'Pillar One' framework, with the 2% levy on e-commerce operators already removed in July 2024.