UK Puts Digital Tax On The Table In US Trade Talks

The United Kingdom said on Monday that it would put its proposed digital services tax on the table for discussion in upcoming trade talks with the United States, a move that will cool tensions following tariff threats from the White House, reported Reuters. 

“We note comments regarding digital taxation and will consider this as part of our policy development,” the UK government said in a white paper detailing its mandate for the U.S. talks.

UK Prime Minister Boris Johnson’s government has proposed a 2% sales tax on internet-based tech companies such as Facebook, Amazon, and Google, among others, based on revenue generated from his country’s residents. The French government passed such a tax late last year, and other European Union countries such as Italy have seriously looked at the idea. 

The digital tax is meant to make it difficult for tech companies to shift profits to the EU’s low-tax jurisdictions, such as Ireland. French President Emmanuel Macron has called it necessary to defend the interests of his country and the EU. 

The Trump administration is adamantly opposed to such taxes, seeing them as unfairly designed to target U.S. companies specifically. It has sought to scuttle idea before the idea before it becomes the standard in the EU.