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Indian Digital Publishers Urge Govt to Reinstate Equalization Levy on Foreign Tech Firms
Equalize Tariff: Indian digital news publishers have urged the government to reimpose an equalization levy on foreign digital companies. They argue that the removal of the levy is unfairly benefiting foreign companies and weakening the position of Indian publishers. Citing examples from countries like France and the UK, the publishers argued that a uniform policy is necessary in India to secure the future of digital media.
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.
