Indian Digital Publishers Urge Govt to Reinstate Equalization Levy on Foreign Tech Firms

Indian online news publishers have called on the government to reintroduce an equalization levy on overseas digital firms. They say the abolition of the levy has brought about an imbalance between Indian and international firms. This is favoring foreign tech firms, while Indian publishers are struggling to stay in business.

Digital news publishers have submitted a formal representation to Ashwini Vaishnav, Minister of Railways, Information and Broadcasting, and Electronics and IT. It expressed that the abolition of the levy has given a competitive edge to foreign platforms. The said platforms are also disseminating news directly or indirectly, which has added to the challenges for Indian companies.

Publishers pointed out that when the six percent equalization levy was implemented, a balance was struck between domestic and international companies. However, its removal has impacted the sustainability of Indian companies. Publishers already facing resource constraints have found it even more difficult to compete with international giants.

Publishers noted that countries like France, the UK, Italy, and Spain still implement digital service taxes. This tax will remain in effect until the OECD/G-20 Pillar One framework is fully implemented. The absence of such a measure in a large digital market like India is detrimental to domestic publishers.

Digital news publishers stated that they are committed partners in the government's vision of "Digital India," "Make in India," and "Atmanirbhar Bharat." However, a uniform tax structure and fair policies are essential for this. Foreign companies are profiting from the Indian market without imposing taxes, but Indian publishers are bearing the costs of quality journalism.

Publishers expressed concern that big tech companies are not only engaging in unfair competition, but their content is also being data-scraped by AI companies without permission. Under these circumstances, it is difficult for Indian publishers to survive in the long term. Therefore, they demanded that the government reinstate a tax or similar financial system to strengthen the future of digital media.

Indian digital publishers have appealed to the government to immediately implement an equal tax on foreign companies. They believe this step is essential for the safety of the Indian media, national interest, and fair competition.