Lok Sabha bill signals potential MDR shift for UPI and RuPay merchants
A Lok Sabha-passed bill proposes enabling MDR levies on UPI and RuPay debit-card transactions while extending electronics-manufacturing tax breaks through March 2041. If enacted, it could reset merchant payment-cost economics and support longer-term device, cloud and data-centre investment.
What happened
Lok Sabha passed a bill extending electronics manufacturing tax breaks and enabling MDR levies on UPI and RuPay debit-card transactions. The changes could
Key facts
- Tax holidays extended by 10 years
- Tax breaks available until March 2041
- Cloud-company data-centre tax exemption until 2047
- SPV surcharge proposed at 25%, up from 10%
Why this matters
Evaluate partnerships or acquisitions in merchant acquiring, payment orchestration, electronics manufacturing, and digital infrastructure that benefit from new payment economics and extended tax certainty.