Digital tax Photograph:( AFP )
The Trump regime had threatened to impose 100 per cent tariffs on $2.4 billion French imports alleging that the Macron government unfairly targeted US tech companies
US Trade Representative Katherine Tai said today that the Biden administration is focused on finding a "multilateral solution" on issues related to international taxation, including concerns over digital services taxes.
The US government announced that it will suspend punitive tariffs on India, Britain and four European nations for six months as it works to resolve the digital services taxes issue.
The previous Trump administration had begun investigations on the digital services tax issue which it said was in use in several countries as a way to tax commerce on the internet which it said unfairly targeted US companies.
The Trump regime had threatened to impose 100 per cent tariffs on $2.4 billion French imports alleging that the Macron government unfairly targeted US tech companies namely Apple and Google with the new digital services tax.
The previous US government was investigating whether countries implemented discriminatory taxes against big US tech companies like Apple, Amazon, Google and Facebook.
Last month, the Boris Johnson government had welcomed the US proposal to reach a solution over the issue.
German Finance Minister Olaf Scholz had earlier said that the US proposal for a global corporate minimum tax of at least 15 per cent will help to reach an agreement as French finance minister Bruno Lemaire also backed the US proposal but added that agreement should be reached by July 10.
"The United States remains committed to reaching a consensus on international tax issues through the OECD and G20 processes," Tai said, adding, "today's actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs... if warranted in the future."
(With inputs from Agencies)