France's efforts to impose taxes on IT-giants did not find support from EU

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France's efforts to impose taxes on IT-giants did not find support from EU

November 07, 2018 - 08:52
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Efforts of Finance Minister of France to find support of his initiative for imposing new tax on IT-giants among his colleagues in EU did not bring desired results so far, Bloomberg writes.

Photo © Mary Pahlke, CC0 1.0

Efforts of Finance Minister of France to find support of his initiative for imposing new tax on IT-giants among his colleagues in EU did not bring desired results so far, Bloomberg writes.

Ministers from Denmark, Ireland and Sweden said that they cannot support proposed tax in its current form, which assumes imposing 3% tax on European sales of such companies, as Amazon.com and Facebook Inc. It shall be noted that there is a need for unanimous decision within EU to accept such initiative. 

Some countries already imposed own taxes, which increases risk of fragmentation for single market. Italy, for example, will introduce duty next year, if there is no common decision. Spain and the UK already announced own taxes.

Existing disagreement emphasizes division inside the bloc, while EU’s government is trying to find a balance between attracting profitable businesses and solving an old problem of unfair tax payment on behalf of global companies that have very limited presence in the region.