US Lobby Warns 2% DIgital Tax For Google, Facebook, Amazon Will Disrupt Trade Relations

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US tech firms are planning to ask for the postponement of the digital tax that will be applicable to them, citing the reasons of the Coronavirus outbreak. 

Nine lobbying groups including the US Chamber of Commerce have asked India to defer the digital tax in a letter to the Finance minister. 

Find out all the details about the digital tax right here!

Global Lobbying Groups Ask India To Postpone New Digital Tax Due To Coronavirus

Nine lobbying groups, which are based out of the United States, Europe, Asia, and Australia penned a combined letter to the Finance Minister of India, Nirmala Sitharaman, requesting a deferment on the new Indian Digital Tax. Other than the US Chamber of Commerce, the signatories also include the Washington-based Information Technology Industry Council, the Asia Internet Coalition, and DigitalEurope.

The government of India recently announced that starting from April 1, all the foreign billings for digital services that will be provided in the country will have a 2 % tax, which will be called the Digital Tax. For those who dont know, foreign billings are where companies take the payment abroad for a service that is provided to the people in India.

The letter states, “The timeframe within which this expansive new measure was approved and entered into force allowed for neither the dialogue nor the significant structural changes that would be necessary (for companies to comply).”


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