Centre to abolish 6% equalisation levy on digital ads

The government has proposed to withdraw a 6% “equalisation levy” imposed on online advertisements in June 2016, in a move that signalled that its ceding some autonomous ground on taxation of the digital economy, at least for the time being. The step, introduced as one of the 59 amendments proposed in the Finance Bill 2025, follows a similar revocation of a more substantive 2% levy on non-resident e-commerce operators last year.

Once Parliament gives its assent, the change will take effect from April 1.