India to scrap digital ad tax, easing US concerns

India will scrap a tax of 6% on digital advertisements online, the finance minister said, easing costs for US tech giants such as Alphabet’s Google, Meta, and Amazon as a way of soothing US trade concerns.

The move responds to concerns raised by Washington after President Donald Trump threatened reciprocal tariffs from April 2 on trading partners, including India, that fuelled alarm among exporters.

Finance Minister Nirmala Sitharaman unveiled the change while introducing amendments to the 2025 Finance Bill in the lower house of parliament, which approved the tax measures in the budget.

“(I) have proposed to remove (the) 6% equalization levy for advertisements,” she told parliament.

A government source said that the decision on the levy took effect on April 1.