ENA Sectors 2025-03-28 14:08:16 <p><span style="font-size:14px"><strong>New Delhi, Mar 28 (KNN) </strong>CUTS International has welcomed the Indian governments decision to eliminate the 6 per cent Equalisation Levy (EL) on online advertisements.</span></p> <p><span style="font-size:14px">The move, announced as part of the Finance Bill 2025-26, marks a significant step towards fostering a more business-friendly digital economy.</span></p> <p><span style="font-size:14px">By removing the 2 per cent e-commerce levy last July and now the 6 per cent EL, the Indian government is taking the right and strategic steps to create a conducive environment for digital businesses, said Pradeep S. Mehta, Secretary General, CUTS International.</span></p> <p><span style="font-size:14px">Reduced advertising costs would encourage higher spending on online platforms, benefiting small Indian businesses that rely on digital advertising.</span></p> <p><span style="font-size:14px">The elimination of EL follows persistent advocacy from CUTS, which has long argued that such levies create regulatory uncertainty and discourage digital investments.</span></p> <p><span style="font-size:14px">The organization has emphasised that Indias digital taxation framework often leads to double taxation, complicating business operations for global digital platforms operating in the country.</span></p> <p><span style="font-size:14px">The levy was seen as a deterrent to foreign firms, adding regulatory complexity and hindering digital innovation.</span></p> <p><span style="font-size:14px">The governments decision aligns with global trends of creating a stable and predictable taxation system for digital businesses. CUTS has actively pushed for reforms in regulatory policies, advocating for reduced compliance burdens and greater certainty in digital business operations.</span></p> <p><span style="font-size:14px">Beyond lowering costs for businesses and consumers, removing the EL is expected to ease cross-jurisdictional trade tensions and support the growth of Indias digital economy.</span></p> <p><span style="font-size:14px">CUTS has engaged with senior finance ministry officials, arguing that low collection rates and enforcement challenges made the EL counterproductive.</span></p> <p><span style="font-size:14px">For further information, please contact Vijay Singh, Assistant Director, CUTS International, at vs1@cuts.org or +91-8076619084.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 41559 https://knnindia.co.in/news/newsdetails/sectors/cuts-international-welcomes-indias-decision-to-eliminate-6-levy-on-online-advertisement 2025-03-28 14:08:16 knnindia.co.in