Left Menu
Development News Edition

US urges countries to suspend digital taxes, supports OECD talks: Mnuchin

US urges countries to suspend digital taxes, supports OECD talks: Mnuchin
Image Credit: IANS

US Treasury Secretary Steven Mnuchin is urging countries like France to suspend taxes on global computing giants such as Google and Amazon and wait for a negotiated agreement on international taxation, according to a letter released on Wednesday. As the United States is poised to impose tariffs of up to 100 percent on USD 2.4 billion in French products over that country's digital services tax, Mnuchin said talks in the Organisation for Economic Cooperation and Development are key to resolving the issue.

"We believe that it is very important that these talks reach agreement in order to prevent the proliferation of unilateral measures, like digital services taxes, which threaten the longstanding multilateral consensus on international taxation," Mnuchin said in a letter to OECD chief Jose Angel Gurria. "We urge all countries to suspend digital services tax initiatives in order to allow the OECD to successfully reach a multilateral agreement," he said in the letter, which was dated Tuesday.

US Trade Representative Robert Lighthizer on Monday released a report slamming France's tax as discriminatory and designed to target American tech giants like Google, Apple, Facebook, and Amazon. He said Washington would proceed quickly with plans to impose tariffs on French products, including champagne, cosmetics, yogurt, and Roquefort cheese.

The decision "sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on US companies," Lighthizer said in a statement on Monday. The French tax imposes a three percent levy on the revenues earned by technology firms in France, which often come from online advertising and other digital services.

It targets revenue instead of profits, which are often reported by tech giants in low-tax jurisdictions like Ireland or Luxembourg in a practice that has enraged governments. Lighthizer's office said it is considering widening the investigation to look into similar taxes in Austria, Italy and Turkey.

Mnuchin said there is "broad support" for providing greater certainty on taxation. "We look forward to working with the OECD along these lines, building on the work already done."

A top EU official expressed concern this week that President Donald Trump's administration was planning to pull out of the multilateral talks, so Mnuchin's support for the talks come as a relief. Cedric O, France's secretary of state for the digital economy, also told AFP in Washington on Tuesday that France believed there was still time to stave off the threatened of tariffs.

"The first and foremost objective that we have is to strike a deal at the OECD," he said, insisting that the current row was "not the end of the story."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...


Latest News

Golf-Teenager wins tense play-off to take tour title

Danish teenager Rasmus Hojgaard gave a nerveless display in a tense sudden-death playoff on Sunday to win the Mauritius Open in a three-man shootout. He made eagle on the third playoff hole, after Italys Renato Paratore had been eliminated ...

Saudi Arabia ends gender-segregated entrances for restaurants

Restaurants in Saudi Arabia will no longer need to maintain entrances segregated by sex, the authorities said on Sunday, further eroding some of the worlds strictest social rules as sweeping reforms take hold.Previously, Saudi Arabia requir...

UP Police and CM Adityanath must learn from Telangana Police: Sadhvi Prachi

Asserting that the police encounter of the rape accused is the only solution to the crime against women, VHP leader Sadhvi Prachi on Sunday said the Uttar Pradesh Police and Chief Minister Yogi Adityanath must take lesson from the Telangana...


Following are the top stories at 9 pm DEL73 DL-LDALL FIRE 43 killed in second deadliest fire incident in Delhi, building had illegal manufacturing unitsNew Delhi At least 43 people were killed when a massive fire ripped through a four-store...

Give Feedback