Global lobbying groups calls India to delay digital tax implementation following the COVID-19 outbreak

Lobbying groups including the US Chamber of Commerce have called India to delay a new digital tax that will hit tech firms which are fighting to end the coronavirus outbreak.

From April 1, India imposed a new 2% digital tax on foreign transactions where companies take payment abroad for digital services provided in India. The tax also applies to foreign e-commerce transactions on site.

In a joint letter, the nine groups, from the United States, Europe, Asia and Australia, urge India Finance Minister to delay the tax implementation by nine months after an industry-wide consultation.

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