Retro changes to Google Tax will hurt foreign investment: Industry

The government widened the scope to impose 2 per cent tax on non-resident e-commerce players with a turnover of Rs 2 crore from April 1, 2020

Key global industry associations have flagged tax uncertainty concerns regarding the expansion in scope of a 2 per cent digital tax in the Union Budget 2021-22, arguing that the ‘retroactive’ amendment would undermine the confidence in India’s regulatory environment and negatively impact the ease of doing business in the country.
 
In a letter addressed to Jayant Sinha, chairman of the parliamentary standing committee of finance, and marked to Finance Minister Nirmala Sitharaman, the multi-association said that the expansion of the equalisation levy would ‘undermine the principle of tax certainty’ and impact foreign investment in the country. It was written