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USTR slams India’s digital tax
Why is it in news?
- The U.S. Trade Representative’s (USTR) office said that digital services taxes adopted by India, Italy and Turkey discriminate against U.S. companies.
- USTR released the findings of its “Section 301” investigations into the digital taxes.
Details:
- USTR called the digital tax adopted by India inconsistent with international tax principles.
- USTR has concluded the digital taxes discriminate against big U.S. tech firms, such as Google, Facebook, Apple and Amazon.
India's Response:
- The 2% equalisation levy does not discriminate against U.S. companies as it applies equally to all non-resident e-commerce operators irrespective of their country of residence.
- The purpose of the levy is to ensure fair competition, reasonableness and exercise the ability of governments to tax businesses.