India plays Google Tax gambit to counter Trump’s tariff tirade, what is it?

The Indian government has proposed scrapping the 6% equalisation levy on online advertising services provided by offshore technology giants such as Google, Meta, and Amazon. The move follows the earlier removal of a 2% digital services tax on e-commerce transactions last year, which had strained trade relations between India and the United States.

Experts believe this step signals India’s intent to ease tensions with Washington and mitigate potential trade retaliations.