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Tuesday, March 12, 2019, 21:21
EU ditches digital tax plan, to work for global reform
By Reuters
Tuesday, March 12, 2019, 21:21 By Reuters

BRUSSELS - European Union governments on Tuesday scrapped a plan to introduce an EU-wide digital tax as some states opposed it, the Romanian presidency of the EU said.

The move is likely to be welcomed by digital giants such as Alphabet Inc's Google and Facebook who would have fallen under the scope of the envisaged 3 percent levy.

READ MORE: Europeans press for digital tax at G20 meeting

Digital giants still face similar taxes that EU states, such as France, Italy, Britain and Spain, are introducing at national level

However they face similar taxes that EU states, such as France, Italy, Britain and Spain, are introducing at national level.

Speaking in a public session of a meeting of EU finance ministers, Romania's Eugen Teodorovici said there was no agreement on the tax despite months of talks, as the bloc's Nordic countries and Ireland kept opposing the reform.

He said ministers would now focus on trying to reach a common position for an overhaul of digital taxation at a global level by 2020, confirming a Reuters report last week.

ALSO READ: EU plan to tax tech giants heads for showdown in Brussels

Global reforms on tax matters have proven very hard to reach because of widely differing interests among top states.

The Organisation for Economic Co-operation and Development (OECD), a club of mostly wealthy nations, is currently working on a global reform of digital taxation to narrow loopholes that allow large multinational firms to greatly cut their tax bills.   



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