India, European nations may soon tax digital firms as US upends global plan

India and European countries may soon begin to unilaterally impose tax on digital companies, including Facebook, Google, and Netflix, after the United States pulled out of global talks to put in place a multilateral instrument to bring these companies in the tax net.

Though the negotiations will continue under the Organization for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting(BEPS) framework, government officials pointed out these talks would not be meaningful without the US’ participation. Hence, India may start to work on expanding the scope of equalisation levy, they said.

Besides, it will also define revenue and user threshold under