DNPA urges govt to reimpose 6% equalisation levy on foreign digital companies

New Delhi: The Digital News Publishers Association (DNPA) has urged the government to reconsider its decision to abolish the 6% Equalisation Levy on revenues of foreign digital companies operating in India. 

In a letter to Union Minister for Information and Broadcasting, Electronics and IT, and Railways Ashwini Vaishnaw, the association sought a review of the move, warning that it has tilted the competitive balance against Indian digital publishers.

The Equalisation Levy, introduced in 2016, required global tech giants such as Google, Meta and Amazon to pay tax on online advertising services offered to Indian residents. It was withdrawn effective April 1, 2025, through amendments to the Finance Bill, as part of India’s commitments under the OECD/G20 Inclusive Framework and bilateral agreements with the United States.

DNPA argued that the levy had recognised the need to ensure fairness between domestic digital publishers and global platforms deriving substantial benefit from the Indian market. Its withdrawal, it said, has left Indian players at a disadvantage.

The association also highlighted that several jurisdictions, including France, the UK, Italy and Spain, continue to impose interim Digital Services Taxes until the OECD’s Pillar One reforms are finalised.

“In this context, we respectfully submit that a review of the Indian position may kindly be undertaken to ensure that the interests of domestic digital publishers are not adversely impacted during this transition period,” DNPA wrote in the letter.

Reaffirming its commitment to Make in India and Atmanirbhar Bharat, DNPA stressed that Indian digital publishers need policy support to remain sustainable and competitive in a fast-changing global ecosystem. The association expressed confidence that the government would extend due consideration to the matter in the national interest and in support of the growth of India’s digital media sector.