Brexit – UK plans digital tax

• The British government is considering a digital tax that would mainly affect American companies such as Google, Facebook and Amazon.
• London wants to coordinate with other governments. If that does not work, Chancellor Hammond announces a solo gesture of the British.

Facebook is one of the most important employers of the burgeoning technological scene of the British capital. The California online network employs 2,300 people in the UK and plans to open new larger offices in London in three years time. Last year, the listed company generated a turnover of £ 1.2 billion in the UK, but only realized profits of £ 7.4 million. pound sterling. Opposition Labor representatives call the bill "scandalous", and even the Conservative government now wants to take action against international technology companies to reduce their tax burden.

On Monday, Chancellor Philip Hammond presented his budget proposals to Parliament. He announced that in April 2020, he would introduce a special tax on the income of Internet companies in the Kingdom. The "digital service tax" prevents companies like Alphabet, the mother of Google, Facebook or Amazon, from postponing profits to lower-tax states. Only suppliers with a turnover of at least £ 1 billion ask Hammond to pay so as not to weigh heavily on the country's Internet startup. The tax is not an additional sales tax on products that customers buy over the Internet, he said. The tax should yield more than 400 million pounds. The politician wants to work for other states to do the same.

In addition, budget planning provides more money for the NHS terminal health service and for the development of fast internet and road networks. This shows Hammond as an obedient subordinate: his leader, Prime Minister Theresa May, had proclaimed early October the "end of austerity". The Conservatives took power in 2010, shortly after the peak of the financial crisis. To restructure the budget, the government has adopted new measures of austerity. Meanwhile, the deficit has dropped considerably.

Hammond can afford a bounty because tax revenues are surprisingly high. Despite the uncertainty surrounding Brexit, the economy continues to grow, wages are rising and unemployment is as low as it was in the 1970s. However, the Chancellor warned that his calculations were based on data from the 1970s. hypothesis that Britain and the EU would agree on a "reasonable" deal. Then, after Brexit in March, a transition phase will begin, in which almost nothing will change for businesses and citizens. Conversely, if the negotiations failed, the tariffs would be introduced in March, which would considerably increase the economy – and therefore the public finances. In this case, the proposed budget would be old paper.