Italy and U.S. in Diplomatic Talks Over Web Tax Dispute

Italy's Deputy Economy Minister Maurizio Leo expresses readiness to engage with the Trump administration to avoid U.S. retaliation over Italy's domestic web tax. The tax, targeting U.S. tech giants like Meta, Google, and Amazon, has been deemed discriminatory by Washington. Efforts to expand the tax's reach were curtailed after political opposition.

Italy is poised to engage in diplomatic conversations with the incoming U.S. administration, led by Donald Trump, to prevent possible retaliation against Rome's domestic web taxation. Deputy Economy Minister Maurizio Leo announced this on Tuesday, as Washington persistently urges Italy to revoke the levy. This tax, according to the U.S., is unjustly discriminatory since it primarily targets American tech giants like Meta Platforms, Google, and Amazon.

"We will need a dialogue with the Trump administration concerning the tax," stated Leo during parliamentary activities. Established in 2019, the 3% levy applies to digital companies with global revenues of at least 750 million euros and Italian-generated sales surpassing 5.5 million euros annually, focusing on revenue from internet transactions.

In efforts to alter the 2025 budget bill, the Treasury had aimed to eliminate these thresholds, a move critics feared would adversely affect smaller businesses. Nevertheless, following disputes with the co-ruling Forza Italia party, the Italian government plans to reinstate the 750 million euro revenue threshold. Economy Minister Giancarlo Giorgetti suggested that widening the web tax’s scope to include smaller firms might have eased tensions with the U.S.

(With inputs from agencies.)