British Finance Minister Rishi Sunak intends (Rishi SunakAbandoning the digital services tax imposed on major tech companies, such as Facebook and Google, after concluding that it is more problematic than it deserves and does not raise a lot of money and could harm the pressure for a US trade deal.
And according to what I mentioned Mail on Sunday, the digital services tax, which came into effect in April, is likely to be lifted after Sunak concluded that the £ 500 million ($ 654 million) that is expected to be raised annually does not represent Only a fraction of the 200 billion pounds of additional debt the country has accumulated due to the coronavirus epidemic.
The digital services tax is also an obstacle to trade talks with Washington, conducted by International Trade Secretary Lise Truss (Liz Truss), With the US government insisting that it is unfairly targeting US technology companies.
It is also a potential hindrance to a post-Brexit bilateral trade deal between Britain and the United States.
The report said: For only half a billion pounds, Rishi concluded that it was a bigger problem than it deserved, given the anger of Trump and Washington.
Former British finance minister Philip Hammond (Philip HammondThe tax, levied at a rate of 2 percent of sales, to ensure that global tech companies pay at least some of the taxes on the revenue, if not the profits, that they make in Britain.
Tax restrictions ensure that nearly all revenue comes from US tech companies. The tax only covers companies with revenues of £ 25 million, and the list of companies affected includes Google, Facebook and Amazon.
Successful European digital companies, such as Spotify, were excluded because they did not operate the search engines, social media services, and online marketplaces.
Critics have warned that the internet giants will pass the tax costs onto customers, and Amazon announced earlier this month that it would increase seller fees from September after talks with the government over the digital services tax failed.
Amazon said: It has borne the impact of the digital services tax since it became law, but will now transfer costs via various fees starting September 1.
US officials, in private and public, have raised the digital services tax for several months as an obstacle to any business deal.
The newspaper quoted a representative of the Ministry of Finance as saying: We have made clear that it is a temporary tax that will be abolished as soon as a suitable global solution is found, and we continue to work with our international partners to reach this goal.
And various countries around the world decided to impose their own taxes on the internet giants after talks stopped about a global digital tax, and the United States called in June to stop international discussions on this issue.