India’s trade secretary has defended the country’s recently introduced digital tax, maintaining that online commerce and other revenues must be taxed in some form. The tax has been objected by US-based tech firms and Washington.

Speaking during a news briefing in New Delhi on Wednesday, Indian Trade Secretary Anup Wadhawan stood by the digital tax, which included in the country’s new annual budget.

Basically, if there is an economic benefit from a certain jurisdiction then there has to be some taxation in that jurisdiction.

The two-percent equalization duty, introduced last year, affects foreign e-commerce companies, including even those who do not own the goods or directly provide any services online. Such companies become liable for the tax if any part of the transactions they are involved in occur online. Royalties and fees for technical services, however, are excluded from taxation. (RT)