Left Menu
Development News Edition

UK says to proceed with digital tax despite US threat

UK says to proceed with digital tax despite US threat

Davos, Jan 22 (AFP) Britain's planned digital tax on tech giants will proceed as planned from April, UK finance minister Sajid Javid insisted Wednesday despite US threats of retaliatory tariffs. "We plan to go ahead with our digital services tax in April," Javid said at the Davos economic summit, as US Treasury Secretary Steven Mnuchin warned that Washington would look to retaliate with a tariff on EU auto imports.

Javid described Britain's tax, seen as targeting especially US giants such as Amazon, Google and Facebook, as "proportionate" and "temporary". Addressing the annual World Economic Forum, he added: "It will fall away once there is an international solution."

Also speaking in Davos on Wednesday, Mnuchin said: "If people want to arbitrarily put taxes on our digital companies we will consider putting taxes arbitrarily on car companies." Mnuchin has specified Britain and Italy, which has already introduced its digital levy on tech companies seen as paying too little tax, as nations at risk of US retaliation.

Austria introduced its own digital tax in January, but France has suspended its plans. Presidents Emmanuel Macron and Donald Trump have agreed to extend negotiations on how to proceed until the end of the year.

France has said it would drop its tax if an international agreement is reached under the auspices of the Organisation for Economic Co-operation and Development. OECD chief Angel Gurria has meanwhile urged Britain to "hold fire" on its tax, the BBC reported Wednesday.

Gurria added that in the absence of a globally agreed tax, there would be a "cacophony and a mess" with "tensions rising all over the place". Austrian finance minister Gernot Bluemel on Wednesday said that a meeting of EU finance ministers this week discussed the digital tax issue.

He told his country's parliament that Austria had "always advocated an international solution on the digital tax, on OECD level or at least on EU level". Bluemel added that Austria had introduced its own tax at the start of the year to ensure a "level playing field and more fairness".

In late 2018, former UK finance minister Philip Hammond announced plans to introduce a two-percent tax on profitable tech companies that generate at least 500 million pounds (590 million euros, $654 million) a year in global revenues. Britain's tax was expected to raise 400 million pounds per year. (AFP) AMS

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

Download The Devdiscourse News App for Latest News.



Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...


Latest News

Cuban cigar sales increase but face challenges in 2020

Cuban cigar sales topped 531 million last year, state monopoly Habanos S.A. announced on Monday as the countrys annual cigar festival opened, most likely the last with partner Imperial Brands Plc.Spain, China, Germany and France were the st...

Science News Roundup: NASA robotic lander confirms quakes on Mars and Katherine Johnson, dies at 101

Following is a summary of current science news briefs.Shake it, baby NASA robotic lander confirms quakes on MarsNASAs robotic InSight lander has for the first time established that Mars is seismically active, but do not call the shaking, ra...

EXCLUSIVE-U.S. wants Afghan president to postpone planned inauguration -sources

The United States wants Afghan President Ashraf Ghani to defer his second-term inauguration over concerns it could inflame an election feud with his political rival and jeopardize U.S.-led peacemaking efforts, two sources familiar with the ...

Vanessa Bryant remembers Kobe as her 'everything'

Kobe Bryant was remembered Monday as a man of passion, as a fierce competitor who turned his fire for basketball into a love for coaching children while putting his wife and their four daughters above all else. The Celebration of Life, held...

Give Feedback