New rates will take effect only after 180 days, giving time for ongoing negotiations in the G-20 countries and organizations for economic cooperation and development.

The United States on Wednesday announced an additional rates ‘suspended’ in certain items from India and five other countries that were considered at the end of the period of inquiry for a year to adopt discriminatory digital service tax on its business.

New rates will take effect only after 180 days, giving time to negotiate in the G-20 countries and organizations for economic and development cooperation (OECD), the US Trade Representative Office (USTR) said in the announcement.

“The United States focuses on finding multilateral solutions for various major problems related to international taxation, including our concerns with digital service tax (DST),” said USTR Katherine Tai. “The United States remains committed to reaching consensus on international tax issues through the OECD and G20 process. Today’s actions provide time for these negotiations to continue to make progress while maintaining the option to impose tariffs under Section 301 if guaranteed in the future.”

The United States launched a comprehensive investigation into a digital service tax adopted by nine countries and one jurisdiction in June 2020: India, Austria, Brazil, Czech Republic, Indonesia, Italy, England and the European Union.

In January 2021, the UST was concluded that DST in India, Austria, Turkey, England, Italy and Spain, “discriminated against US digital companies, were not consistent with the principles of international taxation, and burdened US companies”.

In March, USTR announced trade actions against six of these entities and kicked the notification period and public comments, with hearings.

In public notification issued in April invited comments and announced a hearing on investigations related to India, USTR was questionable 2% tax adopted by India about income generated from various digital services including digital platform services, digital content sales, digital sales of their own goods , data related to data, software-as-a-service, and others. DST, already recorded, only applied to the “non-resident” company.

And trade representatives have said in the same announcement that the proposed retaliation trade is an additional tariff of up to 25% T “AD” AD “AD” AD “AD” at the level of aggregate trade that will collect duties for Indian goods in the range of DST Expected by India to be collected from US companies “, which, he added, will reach around $ 55 million per year.