France approves digital tax on Google, Amazon and Facebook

France approves digital tax on Google, Amazon and Facebook

Agency News

Paris, Jul 11 : France has approved a tax on digital tech giants like Google, Amazon and Facebook on Thursday, despite a warning from Trump administration that it “unfairly targets American companies".

The new tax was approved by the French Senate on Thursday, a week after it was passed by the lower house, the National Assembly. On Wednesday, Trump ordered an investigation into France’s planned “digital tax” on tech companies. The 3 per cent tax would apply to the French revenues of roughly 30 major companies, mostly from the US, reports CNBC. Trump's probe into the tech tax could result in France being slapped with new tariffs or trade restrictions.

It would also affect companies with at least €750 million in annual revenue and would apply to income from digital businesses including online advertising.

“France is sovereign, and France decides its own tax rules. And this will continue to be the case,” France’s Finance Minister Bruno Le Maire said in a statement. He added the US and France could find agreements, rather than using threats, to reach a deal on the “fair taxation” of internet giants.

In a statement, Amazon said the French tax is “poorly constructed” and “discriminatory,” adding it will cause “significant harm to American and French consumers alike.”

“We applaud the Trump Administration for taking decisive action against France and for signaling to all of America’s trading partners that the US government will not acquiesce to tax and trade policies that discriminate against American businesses,” the Amazon statement said. (UNI)