India and other developing countries have objected to a provision in a multilateral convention that bars nations from enacting any future digital services taxes such as equalization levy, saying the clause will unduly restrict sovereign rights to make laws, a development seen delaying a global tax deal to address digitaisation challenges.“We should be conscious that any commitment beyond a political commitment, will effectively constrain future law-making powers of sovereign jurisdictions,” according to the comments submitted by the G-24 (Group of 24 countries that includes India) on the Progress Report on Amount A of Pillar One of the proposed OECD/G20 tax deal.
