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Global groups urge India to delay new 2% digital tax amid Covid-19 crisis

From April 1 India imposed a new 2 per cent tax on foreign billings, or transactions where companies take payment abroad for digital services provided in India

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The tax caught the industry off guard as it was not part of the main proposals India's finance ministry had presented in parliament a month earlier.

BS Web Team

2 min read Last Updated : Apr 29 2020 | 1:19 PM IST

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 per cent 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.

The tax, inserted into budget amendments passed in March, caught the industry off guard as it was not part of

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