New Delhi, March 25 -- New Delhi: The government is likely to withdraw the 6% 'equalization levy' introduced in 2016 on online advertisement services rendered to Indian businesses by offshore digital economy firms through amendments to the Finance Bill, 2025, to be taken up by Parliament this week, two persons familiar with the development said.

In August, the government had removed a 2% levy that applied to a wide array of services rendered to Indian businesses by offshore tech firms including cloud services and e-commerce services.

The government had then retained the 6% levy that applied to online advertisement services by offshore technology companies that do not have a physical presence in India.

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