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What is Google Tax by India that riles US and UK?
May 12, 09:05

The so-called Google Tax by India, officially known as the Equalization Levy, repeatedly makes headlines. India charges all non-resident entities up to 2 percent on their earnings from digital businesses based in India or those who target its consumer market. Originally introduced in 2016 for untaxed foreign tech majors profiting in India, it has been expanded since April 2020. Now, offshore e-commerce firms selling through an Indian arm are exempted. But the US, European Union and United Kingdom remain bitterly opposed, calling it 'discriminatory' and saying it stifles innovation and digitization. India's collection from the levy nearly doubled to Rs. 2,035 crore in FY21 from Rs. 1,138 crore in FY20.

Collection from Equalization Levy in 2020-21