Germany shelves proposals to levy tax on global tech firms

Despite its vociferous campaigning last year for levying a 3% tax on the digital earnings of global tech firms, the SPD backed down after concluding that such a move would not be productive.

On Wednesday, Germany’s Bild newspaper stated, the country’s finance ministry has, given up its plan of levying more taxes on internet giants, including Google, Amazon, Apple, Facebook and others.

According to a confidential document from Germany’s finance ministry the “demonisation” of the big digital companies” was “not productive”, reported Bild.

The move marks the reversal of a key position by German Finance Minister Olaf Scholz who belongs to the Social Democrat (SPD) who had campaigned last year for higher taxes for global internet firms.

Incidentally, the SPD is a junior partner in German Chancellor Angela Merkel’s coalition government.

Since long has Germany been cool to proposals from the European Commission aimed at levying a 3% tax on digital revenues earned in Europe by global online tech firms. Doing so would bring in an estimated $5.78 billion (5 billion euros).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s