EU stumbles in plan to levy 3% digital tax on major firms

Posted in: Government & Policy at 07/11/2018 22:42

A European Union plan to tax Google, Facebook and other internet firms risks failure after a handful of member states announced their opposition.

EU countries are studying proposals to levy a 3% tax on big internet companies that make money from user data or digital advertising, in a bid to level the playing field with bricks-and-mortar companies that pay more tax.
https://www.theguardian.com/business/2018/nov/06/eu-stumbles-in-plan-to-levy-3-digital-tax-on-major-firms

Also see:

EU states divided over digital tax, fear U.S. retaliation
EU governments are divided over a plan to tax big internet firms like Google and Facebook on their turnover, fearing retaliation from the United States, and could delay its application until a global deal is reached, top officials said on Tuesday.

Under a proposal from the EU’s executive Commission in March, EU states would charge a 3 percent levy on the digital revenues of large firms that are accused of averting tax by routing their profits to the bloc’s low-tax states.
https://in.reuters.com/article/eu-tax-digital/eu-states-divided-over-digital-tax-fear-u-s-retaliation-idINKCN1NB1X5

France says EU must have directive on digital tax this year
The French government insists that the European Union must agree on a directive by the end of the year to tax large international companies doing business in the digital sphere like Google, French Finance Minister Bruno Le Maire said.

“Lets be clear - this is the red line for France, there must be the adoption of a directive on digital taxation by the end of this year,” Le Maire told reporters on Tuesday on entering a meeting of EU finance ministers.
https://in.reuters.com/article/eu-digital-france/france-says-eu-must-have-directive-on-digital-tax-this-year-idINKCN1NB0XZ

Germany says EU should revise, delay digital tax plan
Germany’s Finance Minister Olaf Scholz said on Tuesday the European Commission should revise its plan for a EU-wide tax on large digital companies and stressed the new levy should be applied only if there is no global deal by the summer of 2020.
https://in.reuters.com/article/usa-election-house-democrats/fox-news-democrats-projected-to-win-control-of-u-s-house-idINKCN1NC08B
https://uk.reuters.com/article/us-eu-tax-digital-germany/germany-says-eu-should-revise-delay-digital-tax-plan-idUKKCN1NB1G8

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