Technology company chiefs have warned that a digital services tax proposed by the European Union would hinder innovation and hurt economic growth.
In a letter to finance ministers of the 28-nation European Union, leaders of 16 tech companies including Spotify, Booking.com and Zalando say the proposed tax would undermine the EU’s goal of a digital single market and “harm the very businesses that are the catalysts for economic growth and employment in the European economy.”
US attacks UK plan for digital services tax on tech giants
The US has hit back against a UK plan to impose a new tax on sales by technology giants.
US political leaders and business groups say the proposal would violate tax agreements by targeting US firms.
They warned the tax could spark US retaliation and hurt prospects for a US-UK trade deal.