July 18, 2019
Finance

Vestager backs national digital tax plans

European Competition Commissioner Margrethe Vestager on Monday backed national digital tax plans put forward by countries like France and the U.K. after a proposal at the EU level failed.

“Europe wants to do this together but we havent been able to agree,” the Danish commissioner told French radio station France Inter in Paris. “And I find its important that each member state that wants to do something, now do something.”

An EU plan to tax the revenues of tech giants like Google and Facebook, championed by France, was put on ice in March after Ireland, Denmark, Sweden and Finland opposed the proposal.

Several EU countries like France and Britain have moved on with plans to launch a digital tax at the national level, prompting pushback from the United States. Talks on a joint approach have moved to the Organization for Economic Cooperation and Development (OECD), with a goal of reaching a global solution by the end of 2020.

Asked whether Europe should fear U.S. retaliation, Vestager said: “I definitely think that we need to step forward. The best thing is a global solution, no doubt about that, but if we want to have results in a reasonable timeframe, Europe will have to step forward. I think the inconvenience of a fragmented digital taxation unfortunately is part of the push.”

In the same interview — dRead More – Source