The government’s decision to withdraw the 6% equalisation levy on digital ads has triggered a fresh wave of questions and criticism. Finance Minister Nirmala Sitharaman insists the rollback is not linked to pressure from the U.S. or the ongoing global trade tensions. In her reply to the debate on Finance Bill 2025 in Rajya Sabha, she claimed the decision was part of a long-standing plan to ease compliance and align with evolving global tax norms. The withdrawal comes just as the U.S. is ramping up trade pressure and threatening tariffs on key Indian exports. Critics argue that this move looks more like a strategic retreat to avoid a clash with Washington, especially in light of past tensions during the Trump era. The FM said the cuts in import duties will make exports competitive as well by reducing the cost of inputs. She also made it clear the government will now only impose either the cess or the surcharge on imports, not both.