"Say no to a digital tax in the EU!"

France is running now with the European Commission the question of the introduction of a digital tax in the EU. French Finance Minister Bruno Le Maire has tried to convince the Swedish government to say yes to the proposal presented by the Swedish media.

The Mayor believes that companies In the digital sector, it does not pay taxes, but it is a mistake. They pay employers' taxes, VAT, income taxes and corporate taxes like any other business. On the other hand, many companies in the digital economy need large sales to make a profit.

It is important that Sweden is still facing France, refusing a digital tax in the EU, despite the fact that we have a transitional government and that this could be delayed until the establishment of a new government .

The Commission proposal that many countries now want to introduce contain all the errors. First, it would mean a whole new logic of imposition. Companies would be taxed for the turnover instead of profit, with the turnover of each Member State becoming the tax base. Exporting companies would pay more taxes where they export than if they generate value or make profits. Export-oriented economies would lose part of their tax base.

Innovation would no longer be taxed where innovation is created, but there is no sale. The logic that the value of a product or service stems from consumption and not from development and production would be directly dangerous. Economies focused on innovation would be penalized as countries with innovation and development clusters would lose revenue. A digital tax would weaken the tax base of the smaller member countries for the benefit of the larger ones.

Let's try it Tax logic of the French Treasury in another area, such as wine production in France. Any efforts made by French wine producers in the winemaking process would make no sense with the new fiscal logic until someone consumes, as the Minister of Finance claims, that the value is created and taxed for consumption.

I claim instead that value comes from production, research and development, innovation and hard work. This principle should apply irrespective of whether it is a Swedish technology subcontractor or a taxed French wine producer.

Second, should startups taxed for its turnover rather than profit or loss in pursuit of profitability. Many digital companies have become global successes well before making a profit. At present, the French finance minister wants the imposed companies to be so before becoming profitable. This would hinder the development of the digital economy in Europe.

Third, defender The Commission, France and several other Member States have stated that the EU should ignore the cooperation of the OECD to put in place a unique system of its kind. The digital economy is a global problem. It would be devastating for the EU to introduce a digital business tax that would give other parts of the world a head start for innovation and digitization. A digital taxation system must be developed within the framework of the OECD.

Longer term should The principle that multinational companies will pay taxes according to where they sell means that large countries like China, India and the United States will receive a growing share of corporate taxes in Europe, whatever their profits.

Fourth, is The proposal aims to tax American companies operating in Europe. It should not be underestimated that the proposal risks complicating the already tense trade relations between the EU and the United States.

There are all the reasons for that Sweden has nevertheless decided to refuse the digital tax. It neutralizes digitization, undermines the Swedish tax base, accentuates the conflict with the United States and launches a new fiscal logic that would lead other companies to tax the income tax of innovative European companies .

This is an opinion piece published in Today's Society. The opinions expressed in this article are the author / authors.