Italy has given approval to a new web tax on the digital companies, which includes the United States tech giants, as part of its 2020 draft budget on Wednesday, this is a measure that could draw threats of retaliation from Washington.
The tax that would be introduced next year, would oblige the firms like Google, Amazon and Facebook to pay a 3percnet tax on the internet transactions, as per the text of the draft budget.
Washington has repeatedly mentioned that the tax is unfairly targeted at US companies. As per a senior official President, Donald Trump was ready to threaten the retaliation when he would be meeting the Italian President—Sergio Mattarella in Washington.
The Italian strategy is anticipated to produce about 600million euros per year, as per the reports of Reuters, as Rome is striving to find alternatives for generating revenues that would permit it to avoid a scheduled surge in the sales tax.
Italy and other European Union countries have been long complaining regarding the way web giants make huge profits in their nations however pay only a few million euros in taxes per year. However, the EU has so far remained unsuccessful in agreeing as a unit on how to tax the firms.
France and the United States has reached a deal in August to place an end a standoff over a French tax on the big internet firms, with the nations repaying France the different between the French tax and planned mechanism pulled up by the OECD.
The plan of Italy is broadly in accordance with the proposals from the OECD, which last week asked the governments to withdraw rules for taxing the global giants.
I am a writer/editor at Research Snipers RS-NEWS and its been 2 years working with the company. My specialties are social, business and development news.