Google Tax Removal / India will remove Google Tax from April 1, big preparations to please America

Google Tax Removal: Modi government has prepared to amend the Finance Bill 2025 to please America. The Government of India is going to remove Google Tax from global companies earning money from digital ads from April 1. Companies like Google and Meta have got a big relief due to the reduction in tax burden.

The biggest news in this amendment is that the 6% Equalisation Levy has been removed, which is going to directly benefit these companies. Let us understand what this amendment is, why it is so important, and how digital companies will benefit from it.

What was Equalisation Levy? Equalisation Levy was a type of tax introduced by the Government of India in 2016. This tax was imposed on foreign digital companies that offered digital services (such as ads, online shopping, cloud services) to Indian users. Its main objective was to tax these companies in the same way as Indian companies are taxed at the local level.

The 6% Equalisation Levy was a tax imposed on the money that foreign companies, such as Google, Meta, and Amazon, earned from Indian advertisers through digital ads. The main reason for implementing it was to bring these companies under the ambit of the Indian tax system and impose appropriate taxes on their Indian business.

How will these companies benefit? After this amendment, these companies will now have to pay less tax on the income they earn from their digital services in India. This will reduce their overall tax bill and they will be able to use a larger part of their income for their investment or growth.

The reduction in tax will give these companies an opportunity to further expand their Indian operations. They can now bring more flexibility in the prices of their services and strengthen their hold in the Indian market.

Earlier, due to the Equalisation Levy, foreign companies were at a loss to some extent, which gave local companies a competitive advantage. Now that the tax has been reduced, foreign companies will be able to present their services in a better way. This can be a big change for the Indian digital market.

The investment of these companies in the Indian market can increase. This can lead to more investment and growth in digital ads, e-commerce, and other sectors, which will also benefit the Indian economy.

Will India suffer any loss? The decision to remove Equalisation Levy raises many questions. This will have a direct impact on the tax earnings of the Indian government. This can cause the government to lose revenue of thousands of crores of rupees annually. Apart from this, Indian digital companies may face tough competition from foreign companies.

However, this decision can strengthen trade relations between India and America. This will increase the investment of foreign companies in India, which can be beneficial for the Indian technology sector in the long term. But, it will be interesting to see what new measures the government adopts to compensate for this revenue.