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.

If you have any questions, please reach out to [email protected]
Jago Corry
Jago joined techUK in July 2022 as a Programme Assistant to Financial Services, Justice and Emergency Services and International Trade. Prior to joining techUK, Jago studied an MSc in European and Global Governance at the University of Bristol.

Neil Ross
As Associate Director for Policy Neil leads techUK's domestic policy development in the UK. In this role 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 also acts as a spokersperson for techUK on UK policy in the media and at Parliamentary Committees.

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

Jana Psarska
Jana is techUK’s Policy Manager for International Trade.