Lok Sabha Passes Finance Bill 2025 with Key Tax Changes

Lok Sabha Passes Finance Bill 2025 with Key Tax Changes

The Lok Sabha has passed the Finance Bill 2025, incorporating 35 government amendments aimed at refining the fiscal proposals for the upcoming financial year. Finance Minister Nirmala Sitharaman introduced the amended bill, which now awaits consideration in the Rajya Sabha

Key Amendments in the Finance Bill 2025:

  • Abolition of the Equalization Levy: One of the significant changes is the removal of the 6% equalization levy on online advertisements, commonly referred to as the “Google tax.” This move is intended to address uncertainties in the international economic environment and aligns with global taxation standards. ​
  • Adjustments to Securities Transaction Tax (STT): The amendments propose an increase in the STT rate on futures contracts from 0.01% to 0.0125% and on options contracts from 0.05% to 0.0625%. These adjustments aim to enhance revenue from securities transactions. ​
  • Nirmala Sitharaman speaks

These amendments reflect the government’s commitment to refining tax policies, enhancing revenue collection, and addressing international economic challenges. The Finance Bill 2025 will now be presented in the Rajya Sabha for further consideration and approval.

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