techUK signs Multi-Association Letter on Equalisation Levy in India

techUK joins other tech and business trade associations in urging the Indian Parliament to drop the amendment to India’s Equalisation Levy included in the Government of India’s proposed Finance Bill to the Union Budget 2021-22 and instead prioritize India’s continued support for the multilateral negotiations to address the tax challenges arising from the digitalisation of the global economy.

The Union Budget 2020 had included an expansion of scope of India’s existing EL to include a new 2% tax on the sale of all goods and services by non-Indian companies over the internet to Indian residents or persons using an IP address located in India. The proposed changes to the Union Budget 2021-22 could bring significantly more transactions into scope, including transactions for which only one aspect of the transaction takes place online or intragroup transactions. The proposed changes stand to undermine confidence in India’s regulatory environment and negatively impact the ease of doing business in India.

Together with trade bodies from Asia and the Western Hemisphere, we believe that the amendment would create significant challenges for all businesses operating in India, further exacerbating the detrimental impact of a measure at odds with India’s ongoing commitment to the multilateral negotiations at the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework to address the tax challenges arising from the digitalisation of the global economy.

We also urge the Government of India and the business community invested in India to engage in a robust dialogue to ensure that policies can achieve the Government of India’s intended short-term and long-term objectives, and to include the firms affected by the measure in those discussions.

Read the full letter below.

Multiassociation letter on Equalisation Levy in India.pdf

If you have any questions, please reach out to [email protected]

Neil Ross

Neil Ross

Head of Policy, techUK

As Head of Policy Neil leads techUK's domestic policy development. He regularly engages with UK and Devolved Government Ministers, senior civil servants and Members of the UK’s Parliaments with the aim of supporting government and industry to work together to make the UK the best place to start, scale and develop technology companies.

Neil joined techUK in 2019 to lead on techUK’s engagement in the UK-EU Brexit trade deal negotiations, as well as leading on economic policy.

He has a background in the UK Parliament and in social research. Neil holds a masters degree in Comparative Public Policy from the University of Edinburgh and an undergraduate degree in International Politics from City, University of London.

Email:
[email protected]
Phone:
078 4276 5470

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Sabina Ciofu

Sabina Ciofu

Head of EU and Trade Policy , techUK

Sabina leads techUK's international policy and engagement. Based in Brussels, she manages our EU policy priorities as well as our international trade agenda.

Sabina leads techUK’s engagement with the European Union institutions, as well as the EU Member States. Outside of the EU, her work is focused on key trade partners, such as the USA and Japan, as well as key international organisations, such as the WTO and the OECD. Previously, she worked as Policy Advisor in the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.

Sabina is the founder of the Gentlewomen’s Club, co-organiser of the Young Professionals in Digital Policy and a member of the World Economic Forum’s Global Shapers Community, where she has led several youth civic engagement and gender equality projects.

She holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.

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Jana Psarska

Jana Psarska

Policy Manager | International Trade, techUK

Jana is techUK’s Programme Manager for International Trade.

 

She supports techUK members in navigating international markets, including market access and regulatory challenges, and assists the tech sector in taking full advantage of UK’s trade deals. Her responsibilities also include driving the UK digital trade policy agenda. Jana is committed to promoting UK digital trade by engaging businesses, UK government and international partners.

 

Jana has several years of experience in trade promotion, public policy, and providing strategic advice on international expansion strategy to companies across a variety of sectors. Prior to techUK, she worked for the Department for International Trade, helping UK SMEs expand abroad.

 

She holds a MA in International Political Economy from King’s College London.

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