After France, Italy to slap Internet giants like Amazon, Google with 'digital tax'

The tax would be applied to companies with sales of over 750 million euros, of which at least 5.5 million euros come from services provided in Italy.

Published: 16th October 2019 11:09 PM  |   Last Updated: 16th October 2019 11:09 PM   |  A+A-

Amazon

Amazon (File photo| AP)

By AFP

MILAN: Italy is to slap internet giants such as Amazon and Google with a three-per cent tax, according to its proposed budget submitted to the European Commission on Wednesday. The tax would be applied to companies with sales of over 750 million euros (USD 830 million), of which at least 5.5 million euros come from services provided in Italy, according to Italian media reports.

The move would bring around 600 million euros into state coffers annually from 2020, according to Italian finance ministry calculations made last year. The tax is similar to one launched in France, which has generated friction with the United States. That tax prompted US President Donald Trump to threaten to retaliate with tariffs on French wines.

Italian media reported on Tuesday that a Trump administration official had threatened to hit back at Italy with similar levies. Italy, like France, has said it would scrap its own digital tax once a new international levy, currently being discussed in negotiations led by the OECD, is put into place.

Under EU law, American tax giants can declare their profits from across the bloc in a single jurisdiction - in practice, most do so in low-tax jurisdictions such as Ireland or the Netherlands. The French tax has drawn accusations of discrimination from US tech companies such as Google and Apple.

Britain has also announced plans for a tax on tech giants, accused of exploiting fiscal rules to sharply cut their tax bills despite soaring profits. The OECD earlier this month relaunched negotiations on a global accord and said it hoped for a "political agreement" by June.

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp