The head of Britain’s treasury has proposed a new tax targeting tech giants such as Google, Facebook and Amazon.com, in what he described as a necessary evolution of the corporate tax system in the digital age.
“The rules have simply not kept pace with changing business models,” Philip Hammond, chancellor of the exchequer, said in a budget address to Parliament on Monday. “And it is clearly not sustainable or fair that digital platform businesses can generate substantial value in the U.K. without paying tax here in respect of that business.”
UK proposes targeting tech giants with 'digital services tax'
The UK on Monday announced that it would be moving forward with a new digital services tax targeting tech giants. Large internet companies will have to pay 2 percent of revenues they earn from UK users over the web starting in April 2020.