Why did India decide to remove the "Google tax" in response to pressure from the US?

The Center intends to eliminate the 6% equalization levy (EL) it levies on digital advertisements as part of the 35 modifications to the Finance Bill, 2025, effective April 1, 2025.The Central government has suggested to eliminate the equalization levy on internet advertisements as part of revisions to the Finance Bill, 2025, a move that is anticipated to help American large technology companies and allay US worries about India being a high tariff country.As part of changes to the Finance Bill, 2025, the central government has proposed doing away with the equalization levy on online ads.

This is expected to benefit big IT companies in the US and ease concerns about India being a high-tariff nation.The equalization charge, also referred to as the Google tax, will be eliminated by the Center on April 1. The clause is one of 59 changes to the Finance Bill that Finance Minister Nirmala Sitharaman made on Monday and presented to Parliament.