Google tax mop-up slips for first time to Rs 3,864 crore since inception

Uncertainty over OECD's global tax deal affects collection in FY23

India’s collection from the equalisation levy, commonly known as Google tax, witnessed a decline in the fiscal year 2022-23 to Rs 3,864 crore, against Rs 3,900 crore a year ago, because of a lower quantum of chargeable payments made by internet companies amid uncertainty over the proposed global tax deal. This is for the first time that the equalisation tax collection saw a decline since its inception in 2016-17.

The stagnation in digital tax revenue could be attributed to multiple factors, including internet companies awaiting clarity on the equalisation levy, especially after India’s deal with the US. Another reason could