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].

Daniel Clarke

Policy Manager for International Policy and Trade, techUK

Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.

Before techUK, Dan worked for data and consulting company GlobalData as an analyst of tech and geopolitics. He has also worked in public affairs, political polling, and has written freelance for the New Statesman and Investment Monitor.

Dan has a degree in MSc International Public Policy from University College London, and a BA Geography degree from the University of Sussex.

Outside of work, Dan is a big fan of football, cooking, going to see live music, and reading about international affairs. 

Email:

[email protected]

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Sabina Ciofu

Associate Director – International, techUK

Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.

Based in Brussels, she leads our EU policy and engagement. She is also our lead on international trade policy, with a focus on digital trade chapter in FTAs, regulatory cooperation as well as broader engagement with the G7, G20, WTO and OECD.

As a transatlanticist at heart, Sabina is a GMF Marshall Memorial fellow and issue-lead on the EU-US Trade and Technology Council, within DigitalEurope.

Previously, she worked as Policy Advisor to a Member of the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.

Sabina loves building communities and bringing people together. She is the founder of the Gentlewomen’s Club and co-organiser of the Young Professionals in Digital Policy. Previously, as a member of the World Economic Forum’s Global Shapers Community, she led several youth civic engagement and gender equality projects.

She sits on the Advisory Board of the University College London European Institute, Café Transatlantique, a network of women in transatlantic technology policy and The Nine, Brussels’ first members-only club designed for women.

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

Email:

[email protected]

Phone:

+32 473 323 280

Website:

www.techuk.org

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