Left Menu
Development News Edition

EU ministers fail to reach agreement on imposing taxes on revenues of tech giants


EU ministers fail to reach agreement on imposing taxes on revenues of tech giants
"Ultimately, the new system secures a real link between where digital profits are made and where they are taxed."

European Union finance ministers were unable to reach an agreement on digital services tax reforms that would target the revenues raised by tech giants like Google and Facebook after various member states opposed the proposed directive.

The European Commission had submitted a proposal to impose a 3 per cent digital services tax on any registered profits for tech businesses with annual worldwide revenues that exceed 750 million euros ($855 million) or annual revenues within the EU that surpass 50 million euros, Efe news reported.

"The new rules will also change how profits are allocated to member states in a way which better reflects how companies can create value online: For example, depending on where the user is based at the time of consumption," the EC explained on its website.

"Ultimately, the new system secures a real link between where digital profits are made and where they are taxed."

However, after it became evident the directive would not get the necessary unanimous backing, with Sweden and Ireland flatly rejecting it, France and Germany adjusted the proposal late Monday to reduce the scope of the new levy in a bid to get the directive passed.

The significantly altered proposal would only apply a 3 per cent tax to sales of digital advertising space and excludes revenues raised through trading of user data and profits of any other sales.

Franco-German lawmakers urged an implementation of the diluted directive "without delay and in any case before March 2019", which in practice would come into effect by January 2021 if the Organization for Economic Co-operation and Development does not implement a global solution for the failures and loopholes the fiscal system presents when it comes to the taxation of digital services.

Civic action group Avaaz decried the outcome of Tuesday's EC meeting.

"Today, Europe had a golden opportunity to end the injustice of tech billionaires avoiding their taxes while everyone else pays. But despite massive public pressure, ministers simply kicked the can down the road. They now have one last chance to get it done before EU elections," it tweeted.

(With inputs from agencies.)


TRENDING

OPINION/BLOG/INTERVIEW

JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Videos

Latest News

U.S. House panel recommends Trump be impeached for obstructing Congress

The U.S. House Judiciary Committee on Friday recommended that President Donald Trump be impeached for obstructing a congressional probe into his alleged attempts to force Ukraine to investigate a political rival, Democratic presidential hop...

Australia's climate stance sparks anger at U.N. summit

Campaigners slammed Australia on the final day of a U.N. climate summit on Friday as its policy of using old carbon credits to count towards future emissions targets emerged as a major sticking point in negotiations.The talks aim to agree w...

BJP urges Thackeray to implement Citizenship Act in Maha

BJP leader Ashish Shelar on Friday wrote to Chief Minister Uddhav Thackeray seeking immediate implementation of the historic amended Citizenship Act in Maharashtra. He also urged Thackeray to clarify his governments position after Congress...

U.S. House panel recommends Trump be impeached for abuse of power

The U.S. House Judiciary Committee on Friday recommended that President Donald Trump be impeached for abuse of power, clearing the way for a vote in the full House of Representatives next week. The impeachment article approved by the panel ...

Give Feedback