India Tax Bill 2026 Reworks UPI Fees, Courts Foreign Capital

India's lawmakers, called the Lok Sabha, passed a big new tax law on August 6, 2026.

The law changes several older tax and payment rules at once.

One change is about UPI, the way most people in India pay with their phones.

For years, shops did not have to pay any fee on UPI payments — something called zero MDR.

The new law lets the government decide later whether some digital payments will start to have fees.

The government says any fee would be paid by shops, not by shoppers, and an NPCI committee will decide the exact rates.

The law also gives big tax breaks to foreign companies that store electronic parts in India, to help build more electronics there.

Some people say this is unfair because small shops might face new charges while foreign investors get long tax breaks.

Others are also unhappy that such an important law was passed without a full debate.