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EU may target tech giants with taxes
EU may target tech giants with taxes

The European Union has found a new method to support its financial situation during the crisis. The EU authorities have decided to increase taxes for the US digital giants such as Google, Facebook, and Amazon. These companies provide their services all over the world. Usually, they do not have to pay taxes as in many countries there are no such laws. Moreover, some countries even lower their taxes to receive revenue from the digital giants. However, taxing tech firms has been a thorny subject in Europe. Besides, the coronavirus spread and its consequences added fuel to the fire. Notably, in Europe, tech giants pay on average an effective tax rate of 9.5%. At the same time, local companies have to pay 23.2%. Thus, even a double tax increase would still be reasonable. Moreover, digital giants are not affected by the virus spread as much as other businesses. Most tech companies have managed to make a profit amid the pandemic. That is why VAT and income taxes could become reliable sources of government revenue. However, the final decision will be made later. Moreover, it is still not clear who will introduce new taxes: national governments or the EU authorities.


প্রকাশিত: 2020-06-03 13:13:01 UTC
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