India axes google tax ahead of trump tariffs

India’s set to ditch the 6% Google tax on online ad services from April 1, a sly move to duck under US President Donald Trump’s retaliatory tariffs slated for April 2. The Reserve Bank’s green light isn’t in yet, but finance minister Nirmala Sitharaman’s tucked this into the Finance Bill’s 59 amendments, eyeing smoother trade vibes with Washington. A Bengaluru coder might cheer, seeing cheaper digital ads on the horizon.

The tax, born in 2016 to nab foreign giants like Google and Meta for ads sold to Indian firms, raked in Rs 3,343 crore this year till mid-March. Trump’s tariff threat—aimed at countries slapping digital levies on US tech—pushed New Delhi to blink, scrapping a levy that’s been a thorn in trade talks. The 2% e-commerce tax got axed last August after a US deal, and now the 6% ad tax follows, with exemptions for these firms also getting the chop.

This isn’t just about ads—it’s a chess play. With Trump’s April 2 deadline looming, India’s tossing the Google tax to dodge a hit on exports like shrimp and rice, which could sting billions. Experts like EY’s Sudhir Kapadia call it a sharp pivot—collections were peanuts compared to the leverage it buys in tariff negotiations.