Global lobbying groups call for delay to India’s new digital tax


Google is particularly concerned that it would not be able to swiftly identify countries where such advertising arrangements were in place, Reuters has reported. — Reuters

NEW DELHI: Nine lobbying groups including the US Chamber of Commerce have urged India to delay a new digital tax that will hit firms such as Facebook and Google as they are battling the fallout of the coronavirus, a letter seen by Reuters showed.

From April 1 India imposed a new 2% tax on foreign billings, or transactions where companies take payment abroad for digital services provided in India. The tax also applies to foreign e-commerce transactions on sites such as Amazon.com.

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