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IA joined a multi-association letter to USTR Ambassador Lighthizer urging him to focus attention on the new expansion of India’s Equalization Levy. On March 23, the Indian Government passed the Finance Bill (2020-2021), which has significant provisions with respect to taxation of digital services which were not in the original bill presented before the Parliament. Specifically, the amended Finance Bill expanded the scope of Equalisation Levy (EL) to cover all digital services (cloud services, B2B, media services, e-commerce services, etc) provided by non-resident providers. This action expands a 2016 policy that applied a 6 percent EL on services relating to digital advertising provided by non-residents to Indian residents.

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