EU Commission Excludes Proposal on Digital Tax, Pushed by Germany, France

EU Commission Excludes Proposal on Digital Tax, Pushed by Germany, France

Facebook logo picture illustration made in Zenica, Bosnia and Herzegovina.

Ireland's finance minister poured cold water Tuesday on a new Franco-German proposal for a European tax on companies' digital revenues, saying it failed to address his concerns.

Germany especially fears damaging tariff hikes on vehicle exports to the USA and top executives are expected in Washington on Tuesday to try to appease Trump and head off a trade war.

"We invite the EU Commission and the Council first to amend and focus its draft directive for a digital services tax on a tax base referring to advertisement, on the basis of a three percent tax on turnover, and second to submit proposals in due course on taxing the digital economy and minimum taxation in line with the work of the OECD".

The tax requires the support of all 28 EU states, including small, low-tax countries like Ireland that have benefited by allowing multinationals to book profits there on digital sales to customers elsewhere in the European Union.

The setback is a blow to French President Emmanuel Macron, as his government had invested considerable political capital in the tax.

France and Germany wanted the EU states to approve the tax by March next year, prior to the European Parliament elections in May and change in the Commission, so it could take effect from the start of 2021.

In the original European Commission proposal, the tax was meant to be a temporary "quick fix" until a broader solution could be found among OECD members. The EU digital tax would apply to the German-French plans, but for only a limited period up to 2025.

Kate Middleton talks Christmas party sugar highs
Kate and Prince William traveled on Wednesday to Cyprus where they helped spread holiday cheer, meeting with military personnel and families living at the base.

Your opinion is valuable.

France and Germany sought on Tuesday to salvage a proposed European Union tax on big digital firms including Google and Facebook by narrowing the focus to cover only companies' online advertising revenue.

US lawmaker Kevin Brady, chairman of the tax-writing Ways and Means Committee in the House of Representatives, welcomed the failure of the proposal, calling the tax a "revenue grab" aimed at an industry dominated by American firms.

Limits the tax to a 3 percent levy on online advertising revenues. "They'll say it's not enough and I can understand them", France's finance minister Bruno Le Maire said.

Finance ministers from reluctant countries didn't give their backing to the narrowed Franco-German plan at the meeting, but said they wouldn't stand in the way of further talks.

The tax would only come into force in 2021 if a plan for a global solution being negotiated at the OECD is not agreed before then.

Would you like to get published on Standard Media websites?

Related News:

  • Celtic, Rangers slip up as Kilmarnock goes top in SPFL

    Celtic, Rangers slip up as Kilmarnock goes top in SPFL

    The former Swansea and Liverpool boss insists sights are already set on the next triumph. If Rangers do fail to win Celtic can go top again if they beat Motherwell .
    Kobe Bryant takes shot at Warriors fans 'who came out of nowhere'

    Kobe Bryant takes shot at Warriors fans 'who came out of nowhere'

    He added that although James was playing a career-low 34.7 minutes, his minutes were high-usage minutes given his statistics. Because Kyle Korver in Atlanta was the bulk of the offence, and he's not a No. 1 option at all, not even close.
    Report Details New Allegations of Moonves' Sexual Misconduct 5 December 2018

    Report Details New Allegations of Moonves' Sexual Misconduct 5 December 2018

    After Moonves' initial departure, it appeared he was still eligible for the lucrative severance package detailed in his contract. The findings will be a factor in whether Moonves receives a severance payout of $120 million.
  • Nuggets G (groin) to undergo MRI on Tuesday

    Nuggets G (groin) to undergo MRI on Tuesday

    Beasley's running dunk after a Toronto miss nudged the lead back to 10 for the Nuggets , who led 86-78 after the third quarter. Toronto's bad three-point shooting continued in the second - Miles connected on the only one of 10 that fell for the Raptors.
    Iran Threatens To Close Key Oil Choke Point

    Iran Threatens To Close Key Oil Choke Point

    The president downplayed the economic impact of sanctions, accusing the media of exaggerating the country's problems. It has vowed to reduce Iran's oil sales to zero, but has granted temporary waivers to eight countries.
    The UN’s Climate Conference Has Kicked Off… in Poland’s Coal Country

    The UN’s Climate Conference Has Kicked Off… in Poland’s Coal Country

    In the weeks leading up to the event, the United Nations asked people to send their thoughts on climate change. We need to act urgently and with audacity. "Be ambitious, but also responsible for the future generations".
  • 71 per cent fall in number of flu cases

    71 per cent fall in number of flu cases

    The Centers for Disease Control and Prevention recommends a yearly flu vaccine for everyone six months of age and older. Kaiser Permanente reported 10 percent of influenza samples tested positive last week for the flu.

    Rocket carrying turkey, fruitcake heads to International Space Station

    It's the first time that's happened since the groundbreaking launch of the company's Falcon Heavy spacecraft in February . Meanwhile, Musk tweeted that the problem was that a "grid fin hydraulic pump stalled, so Falcon landed just out to sea".
    Trump 'building new liberal order' to prevent wars, Mike Pompeo says

    Trump 'building new liberal order' to prevent wars, Mike Pompeo says

    Secretary of State Mike Pompeo is in Brussels to attend a two-day meeting of North Atlantic Treaty Organisation foreign ministers. He said a lack of American and European leadership over the last 30 years had contributed to the malaise. "Quite the opposite.
  • Tom Cruise Is Going To War With A Setting On Your TV

    Tom Cruise Is Going To War With A Setting On Your TV

    Cruise took time out from shooting Top Gun: Maverick to shoot the short public service announcement and posted a tweet about it. According to BBC, part of the reason is because the actor is lacking when it comes to height.
    SpaceX's Falcon rocket ditches in water after sending cargo to ISS

    SpaceX's Falcon rocket ditches in water after sending cargo to ISS

    Twenty years ago this week, Cabana commanded the shuttle mission that carried up the first USA part of the space station. The apparatus is created to deploy up to 18 nanosatellites after a Cygnus spaceship leaves the station.
    Pete Davidson Talks Horrific Bullying, Suicidal Thoughts In Emotional Instagram Post

    Pete Davidson Talks Horrific Bullying, Suicidal Thoughts In Emotional Instagram Post

    Davidson vowed, "No matter how hard the internet or anyone tries to make me kill myself, I won't". The song became Grande's first number one single on the Hot 100 and went platinum.


Most liked

Captain Marvel: 13 Major Questions After The New Trailer
Which means that, before we get the Avengers 4 trailer, we've now got a new one for Captain Marvel . Memories of her friend Maria Rambeau (Lashana Lynch) and her past life on Earth keep bubbling up.

Apple finally releases a case for the iPhone XR
When the iPhone XR went on sale in October this year, Apple didn't have any official case for consumers to purchase. You read Apple marketing team's description of this Clear Case below.

Kelly’ Documentary Screening Evacuated Over Gun Threat
Kelly's alleged sexual misconduct over the years was set to premiere in New York City this week before things took a unsafe turn. This was an outside inside-job to me; someone on the outside does not want what's going on on the inside to be completed.

British woman Grace Millane, 22, missing during year out in New Zealand
Police are continuing to investigate the disappearance of missing 22-year-old English tourist Grace Millane . Various sightings of Millane have her last wearing a black top, blue jeans and red sneakers.

Pete Davidson 'blocks Ariana Grande' on Instagram
I live fast and full-out, and I make mistakes, and I learn from them and I'm grateful no matter what happens". Never mentioned any names, never said a word about anyone or anything.

Canada Arrests Huawei CFO at Request of U.S. Authorities
Meng...to face unspecified charges in the Eastern District of NY , when she was transferring flights in Canada. BT was also removing Huawei equipment from its existing 3G and 4G networks.

Search underway after 2 Marine aircraft crash off coast of Japan
The Marines said in a statement that Japanese search and rescue aircraft responded and were aiding in the rescue effort. The reports suggest the F/A-18 is a two-seat variant and five other crewmembers were on board the C-130.

Global Citizen Festival: Beyoncè and her jaw-dropping outfits
Cele said police had one case number for a stolen cellphone, but said that no other cases had been opened. Also in 2013 , thieves made off with cash takings at the stadium after a Justin Bieber concert.

Leon Balogun scores after just 25 seconds for Brighton
Balgoun turned from hero to villain when he brought down Zaha and Luka Milivojevic scored a consolation goal from the spot. Four arrests were made in the centre of Brighton , three at Falmer station and three at the Amex Stadium.

Sean Dyche glad Burnley have already been written off
James McArthur and Andros Townsend scored the goals for Palace, as the totally outplayed Burnley throughout. The home side then took the lead, deservedly, but it came rather fortuitously.

CDC: U.S. AFM cases appear to have peaked
The Centers for Disease Control and Prevention said it has confirmed 134 cases of AFM, out of 299 suspected cases in 33 states. AFM doesn't seem to be occurring in clusters, meaning that the condition itself is not contagious from one person to another.

Don't Get Too Excited, But Huawei's Nova 4 Launches This Month
There's no information on the pricing and availability details for the Huawei Nova 4 just yet, so stay tuned for more updates . This makes the phone the first to have an in-display camera , and also the first to use the Infinity-O display.

Robben: I will leave Bayern at end of the season
Robben also scored an 89th-minute victor in 2013 Champions League final against Dortmund to finish the season with the treble. Dutch Bayern forward Arjen Robben said that leaving the club where he played for nearly ten years, according to Omnisport .

XFL announces eight teams, cities and stadiums for its return in 2020
In October, XFL Commissioner Oliver Luck said the league had no plans to resurrect original team names and identities. He also said they've taken input from fans and some of their best ideas have come from them.

Baby from dead donor's womb gives infertile hope
A baby has been born using a uterus transplanted from a dead donor for the first time, offering hope to those unable to conceive. Ten attempts were made - in the United States, the Czech Republic, and Turkey - before the success reported this week.