US proposes tit-for-tat tariffs over e-commerce tax

WASHINGTON/NEW DELHI: The United States Commerce Consultant (USTR) has proposed retaliatory commerce actions in opposition to India and sure different nations which have imposed or are contemplating equalisation levy/digital companies tax on e-commerce companies.
It has issued notices in search of public feedback on proposed commerce actions in opposition to six nations, together with India. A USTR assertion mentioned it “is continuing with the general public discover and remark course of on attainable commerce actions to protect procedural choices earlier than the conclusion of the statutory one-year time interval for finishing the investigations”.
In keeping with a USTR doc pertaining to India, it has requested “written feedback concerning a possible commerce motion in reference to the Part 301 investigation of India’s digital companies tax”.
On this, sources within the authorities on Saturday mentioned India will study the proposed motion with the stakeholders involved and would take appropriate measures, protecting in thoughts the commerce and business curiosity of the nation and total curiosity of its folks.
In June 2020, the US initiated an investigation beneath Part 301 of the US Commerce Act, 1974 in opposition to the taxation on digital companies adopted or into consideration by India, Italy, Turkey, UK, Spain and Austria.
The report of this investigation in January this yr concluded that India’s equalisation levy, by its construction and operation, discriminates in opposition to US digital firms. It was strongly opposed by India.
USTR Katherine Tai has said that the US is dedicated to working with its buying and selling companions to resolve its considerations with digital companies taxes and deal with broader problems with worldwide taxation. “Nonetheless, till such a consensus is reached, we’ll keep our choices beneath the Part 301 course of, together with, if vital, the imposition of tariffs,” Tai mentioned.

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