EU digital tax plan flounders



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BRUSSELS: A European Union plan to tax big internet firms like Google and Facebook on their thumbs up.

Under the heading of the European Commission in March, EU states would charge a 3 percent levy on the digital revenues of large firms that are accused of taxing their profits to the bloc's low-tax states.

The plan is designed to change the tax rate of some of the world's largest companies.

But it does require the support of all countries and countries, and they have the advantage of allowing them to do so.

While the harshest criticism had already taken place behind closed doors, on Tuesday many EU finance ministers are paying attention to a meeting in Brussels that is being streamed over the internet, allowing their disputes to be aired publicly.

Germany, which initially had a backing plan, which would be excluded from the scope of the new tax activities that could be linked to carmakers. German Finance Minister Olaf Scholz also said that the tax should not be applied until the summer of 2020, and only if no global deal was reached on the same issue.

France's Finance Minister Bruno Le Maire, who has long been the main supporter of the tax, has accepted a major concession. But he said the EU should still reach agreement on the issue of this year, to avoid states applying their own national taxes, in moves he said would harm the EU single market.

Spain and Britain have announced their own national plans to tax digital companies, and reiterate their intention to move ahead. The Italian finance minister Giovanni Tria said Italy would also proceed alone if not reached by the end of the year.

Austria, which holds the rotating EU presidency, said it will make its last attempt for an agreement at a meeting of finance ministers in December

"Danish Finance Minister Kristian Jensen said," It is very difficult to see an agreement on the digital tax because so many technical issues are not solved.

He added that it was suggested that it would be mostly U.S. companies and it would attract U.S. retaliation.

The Irish Finance Minister Paschal Donohoe, who said it would be a negative precedent for Europe, said it would be a negative precedent for Europe. Produced.

"We are net exporters What kind of reaction would we have had this model imposed on us?" he told ministers.

(Reporting by Francesco Guarascio, Editing by Peter Graff)

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