The French government is unveiling plans to slap a 3 percent tax on the French revenues of internet giants like Google, Amazon and Facebook. In October, Chancellor Philip Hammond said the United Kingdom would tax 2% of British user-generated revenue in a new "Digital Services tax".
The EU digital tax was defeated in its previous form, due to strong opposition from other countries.
Hammond estimated that this would bring in up to £400 million, or $510 million, a year for the Treasury, starting in 2020.
The government hopes the move will catch on overseas despite an earlier failure to reach consensus at the European Union level.
Paris says it is now seeking "common ground" on the issue with fellow members of the Organisation for Economic Cooperation and Development (OECD) in order to reach a worldwide accord.More news: Apex Legends March Patch Notes: Here Are the Big Changes
The French tax will apply retroactively to the beginning of 2019, making it one of the first such taxes to go on the books anywhere in the world.
But Paris argues the measure would be a vote-winning accomplishment for mainstream EU politicians before European parliamentary elections in May, in which anti-Brussels populists could do well.
An interim report should "be presented to the G20 during 2019", it added, speaking of the group of industrialised and emerging nations.
Big tech firms like Amazon, Facebook, and Google are about to be clobbered with new tax bills in Europe, as lawmakers demand they contribute more to the public purse. In addition, authorities in Europe especially France have turned their sights on tech giants, with the aim to compel them to pay even more tax for the businesses they generate from the European region.More news: Cantonment Church Offers Drive-Thru Ashes For Ash Wednesday
In 2016, it was ordered by the commission to pay 13 billion euros in back taxes to Ireland which were judged to amount to illegal state aid.
The latest report shows that the U.S. and China might talk regarding France regarding this new digital tax since many companies are getting affected because of it.
Only digital companies with global annual sales of more than 750 million euros and sales in France of at least 25 million euros will be taxed under the new French law.
France is expected to move quickly to introduce the tax, the Associated Press reported, as President Emmanuel Macron's party has a majority in the French Parliament.
He estimates it will raise about 500 million euros a year.More news: Stem cell transplant shows promise for AIDS treatment | newkerala.com #109852