Finance General News

European Union introduces Digital Services Tax to protect domestic firms

The Digital Services tax has been announced by the European Union and this is going to make big changes in economic growth. Innovation is going to slow down because of the sudden proposal of Digital Service Tax. Companies like Spotify, Zalando, and Booking.com have written a letter to the finance minister of the European Union. The letter has the goal of making the European Union realize how their decision would affect the growth of the industry.

Johannes Bahrke from the European Union was there on Tuesday to defend the whole proposal of Digital Service Tax. The reason why this is so much important is to create an equal level between companies inside as well as outside the European Union. According to the spokesperson of the European Union, they would prefer an international agreement with respect to the new European Union law.

In the month of March, the European Union finally revealed their plan so that they are able to apply the Digital Service Tax. The reason that this tax proposal became so much popular because it allowed tech giants like Google and Facebook to pay more taxes.

According to Brussels, the corporate taxes are not up to date as the digital marketplace and this is the reason that big companies are able to make huge profits by paying a little amount of money in taxes. All the major companies like Facebook, Amazon, and Google pay their taxes with respect to the region they are based on. This is the reason why big companies try to set up their offices in places where the taxes are cooperatively less. Britain has finally come up with its own Technology Tax and has announced that it will soon be leaving the European Union.