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India Abolishes Google Tax on Online Ads
In a strategic move to prevent potential U.S. tariffs, India has officially repealed the 6% “Google tax” on online advertisements. This tax, introduced in 2016, was designed to level the competition between Indian businesses and global tech giants like Google, Meta, and Amazon, which operate in India without a physical presence.
The abolition of this tax is expected to strengthen trade relations between India and the U.S., potentially avoiding retaliatory tariffs on Indian exports. It also makes digital advertising more cost-effective for Indian businesses relying on global platforms.
Experts believe this move will enhance India’s appeal as a business-friendly environment, fostering growth in the digital economy. As foreign tech companies benefit, Indian advertisers may also experience lower costs, leading to increased ad spending and market expansion.
With this policy shift, India signals its commitment to fair digital trade practices, paving the way for stronger international collaborations and a more competitive digital advertising landscape.
