CUTS International Welcomes India's Decision To Eliminate 6% Levy On Online Advertisement

(MENAFN- KNN India) New Delhi, Mar 28 (KNN) CUTS International has welcomed the Indian government's decision to eliminate the 6 per cent Equalisation Levy (EL) on online advertisements.

The move, announced as part of the Finance Bill 2025-26, marks a significant step towards fostering a more business-friendly digital economy.

“By removing the 2 per cent e-commerce levy last July and now the 6 per cent EL, the Indian government is taking the right and strategic steps to create a conducive environment for digital businesses,” said Pradeep S. Mehta, Secretary General, CUTS International.

“Reduced advertising costs would encourage higher spending on online platforms, benefiting small Indian businesses that rely on digital advertising.”

The elimination of EL follows persistent advocacy from CUTS, which has long argued that such levies create regulatory uncertainty and discourage digital investments.

The organization has emphasised that India's digital taxation framework often leads to double taxation, complicating business operations for global digital platforms operating in the country.

The levy was seen as a deterrent to foreign firms, adding regulatory complexity and hindering digital innovation.

The government's decision aligns with global trends of creating a stable and predictable taxation system for digital businesses. CUTS has actively pushed for reforms in regulatory policies, advocating for reduced compliance burdens and greater certainty in digital business operations.

Beyond lowering costs for businesses and consumers, removing the EL is expected to ease cross-jurisdictional trade tensions and support the growth of India's digital economy.

CUTS has engaged with senior finance ministry officials, arguing that low collection rates and enforcement challenges made the EL counterproductive.

For further information, please contact Vijay Singh, Assistant Director, CUTS International, at ... or +91-8076619084.

(KNN Bureau)

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