BRUSSELS: 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 per cent 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.
But the plan, which requires the support of all 28 EU states, is opposed by a large number of them.
The Commission’s effort to come up with a system to ensure Internet companies pay adequate tax has been running in parallel with a study of the subject by the Organisation for Economic Cooperation and Development seeking a multi-lateral approach.
“It is very difficult to see an agreement on the digital tax because so many technical issues are not solved yet,” Danish Finance Minister, Kristian Jensen, told reporters on the sidelines of a meeting of European Union finance ministers. — Reuters
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