The US has said that Europe is unfairly targeting American companies with its digital tax rules and is preparing retaliation, according to multiple reports. &nbsp;Nearly half of OECD member states from Europe have implemented or proposed digital services taxes (DSTs). Compliance costs and penalties have increased significantly for US firms due to these laws and regulations. Ths US is now viewing fines against its tech firms as de facto tariffs on digital services and preparing to retaliate. Here is what you should know.<h2>What is digital tax?</h2>The EU collectively and some of its member states individually impose taxes on revenue earned by large tech firms from advertising, marketplaces and user data. The EU also has the Digital Markets Act and the Digital Services Act that regulate how Big Tech firms operate, compete, and moderate content in the region. The DMA and DSA regulate gatekeepers and content moderation. The US has argued that these ar e trade barriers, disproportionately affecting American firms rather than European competitors.Also read:<a href="https://www.wionews.com/world/potus-s-end-of-year-performance-report-card-trump-s-approval-rating-slips-to-39-1765939497912"> POTUS's end-of-year performance report card: Trump's approval rating slips to 39%</a><h2>How does digital tax affect American tech companies?</h2>Tech giants like Google, Meta, Amazon, Apple, and X face the major brunt of EU investigations and fines. Recent fines include €2.95 billion on Google, €500 mn on Apple, €200 mn on Meta, and €140 mn on X, as per European Commission records.Besides financial penalties, most are facing ongoing legal cases and higher compliance costs. American officials say digital taxes reduce revenues earned by these companies in Europe and limit market access, undermining US competitiveness.&nbsp;The Trump administration is painting these as equivalent to tariffs on digital services.<a href="https://www.wionews.com/videos/india-goods-exports-rise-in-november-trump-s-tariff-gamble-backfired-1765897464938/embed">https://www.wionews.com/videos/india-goods-exports-rise-in-november-trump-s-tariff-gamble-backfired-1765897464938/embed</a><h2>Digital tax in EU: How will US retaliate?</h2>The Office of the US Trade Representative warned that it would use all available trade tools if the EU continues its policies. Countermeasures include fees or restrictions on European service providers operating in the United States, such as Spotify. Some European firms in consulting, logistics, software and manufacturing could also be potential targets. Specific companies like Accenture, Siemens, DHL could feel the heat. Possible tariffs and other trade actions would take place against countries adopting digital taxes on US firms.&nbsp;Also read: <a href="https://www.wionews.com/world/us-lawmakers-introduce-resolution-to-end-trump-s-tariffs-on-india-1765597979819">US lawmakers introduce resolution to end Trump's tariffs on India</a><h2>US is trying to pressure Europe to roll back or modify tech regulations</h2>The dispute has increased US–EU trade tensions, even amid ongoing negotiations over broader economic cooperation and to address Trump tariffs. The EU and specific nations in the bloc argue that digital laws apply equally to all companies and refuse to weaken them. Similar threats from Trump administration had led Canada to rescind its DST in June.

After the Trump tariff war, the US and European Union appear poised for another clash, this time over digital taxes and tech rules. The US has warned of fees and restrictions on European firms in response to EU action against US tech firms.


The US has said that Europe is unfairly targeting American companies with its digital tax rules and is preparing retaliation, according to multiple reports. Nearly half of OECD member states from Europe have implemented or proposed digital services taxes (DSTs). Compliance costs and penalties have increased significantly for US firms due to these laws and regulations. Ths US is now viewing fines against its tech firms as de facto tariffs on digital services and preparing to retaliate. Here is what you should know. What is digital tax? The EU collectively and some of its member states individually impose taxes on revenue earned by large tech firms from advertising, marketplaces and user data. The EU also has the Digital Markets Act and the Digital Services Act that regulate how Big Tech firms operate, compete, and moderate content in the region. The DMA and DSA regulate gatekeepers and content moderation. The US has argued that these ar e trade barriers, disproportionately affecting American firms rather than European competitors. Also read: POTUS's end-of-year performance report card: Trump's approval rating slips to 39% How does digital tax affect American tech companies? Tech giants like Google, Meta, Amazon, Apple, and X face the major brunt of EU investigations and fines. Recent fines include €2.95 billion on Google, €500 mn on Apple, €200 mn on Meta, and €140 mn on X, as per European Commission records. Besides financial penalties, most are facing ongoing legal cases and higher compliance costs. American officials say digital taxes reduce revenues earned by these companies in Europe and limit market access, undermining US competitiveness. The Trump administration is painting these as equivalent to tariffs on digital services. https://www.wionews.com/videos/india-goods-exports-rise-in-november-trump-s-tariff-gamble-backfired-1765897464938/embed Digital tax in EU: How will US retaliate? The Office of the US Trade Representative warned that it would use all available trade tools if the EU continues its policies. Countermeasures include fees or restrictions on European service providers operating in the United States, such as Spotify. Some European firms in consulting, logistics, software and manufacturing could also be potential targets. Specific companies like Accenture, Siemens, DHL could feel the heat. Possible tariffs and other trade actions would take place against countries adopting digital taxes on US firms. Also read: US lawmakers introduce resolution to end Trump's tariffs on India US is trying to pressure Europe to roll back or modify tech regulations The dispute has increased US–EU trade tensions, even amid ongoing negotiations over broader economic cooperation and to address Trump tariffs. The EU and specific nations in the bloc argue that digital laws apply equally to all companies and refuse to weaken them. Similar threats from Trump administration had led Canada to rescind its DST in June.

After the Trump tariff war, the US and European Union appear poised for another clash, this time over digital taxes and tech rules. The US has warned of fees and restrictions on European companies in response to EU action against US tech firms. &nbsp;

After the Trump tariff war, digital tax on US tech firms is emerging as new conflict area with Europe. What is US threatening?

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.

Watch:

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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.&nbsp;

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. 
&nbsp; 
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) 
&nbsp;

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.

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. Watch: 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)

US suspends tariffs on India, UK, EU over digital services tax dispute

France`s finance ministry has sent out notices to big tech companies liable for its digital service tax to pay the levy as planned in December, the ministry said on Wednesday.

France suspended collection of the tax, which will hit companies like Facebook and Amazon, early this year while negotiations were underway at the Organisation for Economic Cooperation and Development (OECD) on an overhaul of international tax rules.

The finance ministry has long said it would collect the tax in December as planned if the talks proved unfruitful by then, which is what happened when the nearly 140 countries involved agreed last month to keep negotiating until mid 2021.

"Companies subject to the tax have received their notice to pay the 2020 instalment," a ministry official said.

France last year applied a 3% levy on revenue from digital services earned in France by companies with revenues of more than 25 million euros there and 750 million euros worldwide.

Facebook`s stance "is to ensure compliance with all tax laws in the jurisdictions where we operate", it said, adding it had received its tax bill from the French authorities.

Amazon has received a reminder from the French authorities to pay the tax, and will comply, according to a person familiar with the matter at the online retailer.

Paris has said it will withdraw the tax as soon as an OECD deal is reached to update the rules on cross-border taxation for the age of online commerce, where big internet companies can book profits in low-tax countries regardless of where their customers are.

The talks stalled as the Trump administration became reluctant to sign on to a multilateral agreement, officials have said. 
"We will levy this digital taxation mid December as we always explained to the U.S. administration," French Finance Minister Bruno Le Maire told a Bloomberg event on Monday.

"Our goal remains to have an OECD agreement by the first months of 2021," he said. 
Dan Neidle, a partner at law firm Clifford Chance, was sceptical U.S. President-elect Joe Biden would agree to such a deal.

"I`m not sure why Biden would agree to something which enables U.S. corporations to pay more tax in Europe and has not many benefits to the U.S.," said Neidle.

France`s finance ministry has sent out notices to big tech companies liable for its digital service tax to pay the levy as planned in December, the ministry said on Wednesday.

France`s finance ministry has sent out notices to big tech companies liable for its digital service tax to pay the levy as planned in December, the ministry said on Wednesday. France suspended collection of the tax, which will hit companies like Facebook and Amazon, early this year while negotiations were underway at the Organisation for Economic Cooperation and Development (OECD) on an overhaul of international tax rules. The finance ministry has long said it would collect the tax in December as planned if the talks proved unfruitful by then, which is what happened when the nearly 140 countries involved agreed last month to keep negotiating until mid 2021. "Companies subject to the tax have received their notice to pay the 2020 instalment," a ministry official said. France last year applied a 3% levy on revenue from digital services earned in France by companies with revenues of more than 25 million euros there and 750 million euros worldwide. Facebook`s stance "is to ensure compliance with all tax laws in the jurisdictions where we operate", it said, adding it had received its tax bill from the French authorities. Amazon has received a reminder from the French authorities to pay the tax, and will comply, according to a person familiar with the matter at the online retailer. Paris has said it will withdraw the tax as soon as an OECD deal is reached to update the rules on cross-border taxation for the age of online commerce, where big internet companies can book profits in low-tax countries regardless of where their customers are. The talks stalled as the Trump administration became reluctant to sign on to a multilateral agreement, officials have said. "We will levy this digital taxation mid December as we always explained to the U.S. administration," French Finance Minister Bruno Le Maire told a Bloomberg event on Monday. "Our goal remains to have an OECD agreement by the first months of 2021," he said. Dan Neidle, a partner at law firm Clifford Chance, was sceptical U.S. President-elect Joe Biden would agree to such a deal. "I`m not sure why Biden would agree to something which enables U.S. corporations to pay more tax in Europe and has not many benefits to the U.S.," said Neidle.

France orders tech giants to pay digital tax

France said a US decision to quit global talks on how to tax big digital firms such as Google, Amazon and Facebook was a "provocation" and the European Union said it could impose taxes even if no deal was reached by year-end.

The latest transatlantic trade row was ignited after the Washington said on Wednesday it was withdrawing from negotiations with European countries over new international tax rules on digital firms, saying talks had made no progress.

Nearly 140 countries are involved in the talks organised by the Organisation for Economic Cooperation and Development (OECD) on the first major rewrite of global tax rules in a generation to bring them up to date for the digital era.

The talks aim to reach a deal by the end of 2020, but that deadline is now slipping out of reach with Washington's latest move and the US presidential election in November.

Finance Minister Bruno Le Maire said France, Britain, Italy and Spain had jointly responded on Thursday to a letter from US Treasury Secretary Steven Mnuchin announcing the pullout.

"This letter is a provocation. It's a provocation towards all the partners at the OECD when we were centimetres away from a deal on the taxation of digital giants," Le Maire said on France Inter radio.

A Spanish government spokeswoman said Madrid and other European countries would not accept "any type of threat from another country" over the digital tax dispute.

European countries says tech firms pay too little tax in countries where they do business because they can shift profits around the globe with little physical infrastructure. Washington has resisted any new unilateral taxes on Silicon Valley companies in the absence of an OECD deal.

CHAMPAGNE AND HANDBAGS

"The European Commission wants a global solution to bring corporate taxation into the 21st century," European Economic Commissioner Paolo Gentiloni said.

"But if that proves impossible this year, we have been clear that we will come forward with a new proposal at EU level," he said, saying taxes could be introduced even without a global deal.

France, one of several European countries which has enacted new taxes to collect more revenue from digital companies, had agreed to suspend collection of its levy while talks were under way on a global approach.

Le Maire said France would impose its digital services tax this year, whether or not Washington returned to negotiations.

"No one can accept that the digital giants can make profits from their 450 million European clients and not pay taxes where they are," he said.

The French tax applies a 3% levy on revenue from digital services earned in France by companies with revenues of more than 25 million euros ($28 million) in France and 750 million euros worldwide.

Washington has threatened to impose trade tariffs on French Champagne, handbags and other goods in response.

The United States opened trade investigations this month into digital taxes in Britain, Italy, Spain and other countries over concerns that they unfairly target US companies.

President Donald Trump threatened this month to impose tariffs on EU cars if the bloc did not drop its tariff on American lobsters.

Efforts to reach even a limited US-EU trade deal have foundered and sources on both sides see little chance of progress with a US presidential election barely four months away.

A finance ministry spokesperson in Britain, which is seeking trade deals with Brussels and Washington after it left the EU, said that London's "preference is for a global solution to the tax challenges posed by digitalisation, and we’ll continue to work with our international partners to achieve that objective."

France said a US decision to quit global talks on how to tax big digital firms such as Google, Amazon and Facebook was a "provocation" and the European Union said it could impose taxes even if no deal was reached by year-end.

France said a US decision to quit global talks on how to tax big digital firms such as Google, Amazon and Facebook was a "provocation" and the European Union said it could impose taxes even if no deal was reached by year-end. The latest transatlantic trade row was ignited after the Washington said on Wednesday it was withdrawing from negotiations with European countries over new international tax rules on digital firms, saying talks had made no progress. Nearly 140 countries are involved in the talks organised by the Organisation for Economic Cooperation and Development (OECD) on the first major rewrite of global tax rules in a generation to bring them up to date for the digital era. The talks aim to reach a deal by the end of 2020, but that deadline is now slipping out of reach with Washington's latest move and the US presidential election in November. Finance Minister Bruno Le Maire said France, Britain, Italy and Spain had jointly responded on Thursday to a letter from US Treasury Secretary Steven Mnuchin announcing the pullout. "This letter is a provocation. It's a provocation towards all the partners at the OECD when we were centimetres away from a deal on the taxation of digital giants," Le Maire said on France Inter radio. A Spanish government spokeswoman said Madrid and other European countries would not accept "any type of threat from another country" over the digital tax dispute. European countries says tech firms pay too little tax in countries where they do business because they can shift profits around the globe with little physical infrastructure. Washington has resisted any new unilateral taxes on Silicon Valley companies in the absence of an OECD deal. CHAMPAGNE AND HANDBAGS "The European Commission wants a global solution to bring corporate taxation into the 21st century," European Economic Commissioner Paolo Gentiloni said. "But if that proves impossible this year, we have been clear that we will come forward with a new proposal at EU level," he said, saying taxes could be introduced even without a global deal. France, one of several European countries which has enacted new taxes to collect more revenue from digital companies, had agreed to suspend collection of its levy while talks were under way on a global approach. Le Maire said France would impose its digital services tax this year, whether or not Washington returned to negotiations. "No one can accept that the digital giants can make profits from their 450 million European clients and not pay taxes where they are," he said. The French tax applies a 3% levy on revenue from digital services earned in France by companies with revenues of more than 25 million euros ($28 million) in France and 750 million euros worldwide. Washington has threatened to impose trade tariffs on French Champagne, handbags and other goods in response. The United States opened trade investigations this month into digital taxes in Britain, Italy, Spain and other countries over concerns that they unfairly target US companies. President Donald Trump threatened this month to impose tariffs on EU cars if the bloc did not drop its tariff on American lobsters. Efforts to reach even a limited US-EU trade deal have foundered and sources on both sides see little chance of progress with a US presidential election barely four months away. A finance ministry spokesperson in Britain, which is seeking trade deals with Brussels and Washington after it left the EU, said that London's "preference is for a global solution to the tax challenges posed by digitalisation, and we’ll continue to work with our international partners to achieve that objective."

Europe threatens digital taxes without global deal, after US quits talks

The global economy is hung over badly with the US-China&nbsp;trade war, the pandemic and now the US may risk sparking a new trade war.

The US is going to investigate some of its closest allies from the European Union to India for digital tax. The US says American tech companies are being intentionally targetted if found guilty countries may face the wrath of US tariffs. 
&nbsp; 
Coronavirus has pushed the world online and where there are people, there's business. Right now, more than 1.8 billion people purchase goods online. Global online sales are worth 2.5 trillion dollars per year with COVID-19, it could rise to over $4four trillion by next year. Digital giants now pocket the cash this huge cash.

However, now governments want a share of the pie. Many countries plan to impose a digital tax and America is protesting. The US wants to investigate countries which plan to introduce digital taxes. It says this is an instrument to target American tech giants.

WATCH:

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But the debate is still on, although the real impact is likely to be felt by consumers and small traders if taxes are imposed on digital transactions, companies will surely look to transfer the burden to their customers be it online shoppers, online advertisers, online traders - many of whom run medium and small scale companies. Ultimately, they will have to indirectly pay the digital levies.

The US argues many of the American tech companies are already compliant with the respective country's tax regime. So, there's no need for an additional tax. The US is targeting some of the world's most valuable online markets, for American tech companies that's where the impact of taxes will be felt the most.

The list of countries includes India, these countries say American tech giants evade taxes by basing themselves in low-tax countries. Their global supply chains put the local online platforms at a disadvantage. To be fair it is not unique to online companies. Every other business ranging from power generators to shoemakers uses such ploys to gain a foothold in newer markets and to save taxes.

America says it will investigate digital taxes to protect its companies. It's not aggression, just self interest but what about the self interest of other countries? How can $4 trillion worth of transactions be left untaxed?

No country with a large market and multiplying online sales will give up the chance. So far, the US has said the investigation is going to be consultative meaning countries will get a chance to defend their digital tax policy.

However, the fear is it may spark another trade war with the US this time targetting its allies - the EU, UK, France which has postponed the collection of digital tax to 2021. Over 140 countries have come together to try and find a solution to the problem of digital tax but can they avert a digital trade war?

The global economy is hung over badly with the US-China trade war, the pandemic and now the US may risk sparking a new trade war. The US is going to investigate some of its closest allies from the European Union to India for digital tax.

The global economy is hung over badly with the US-China trade war, the pandemic and now the US may risk sparking a new trade war. The US is going to investigate some of its closest allies from the European Union to India for digital tax. The US says American tech companies are being intentionally targetted if found guilty countries may face the wrath of US tariffs. Coronavirus has pushed the world online and where there are people, there's business. Right now, more than 1.8 billion people purchase goods online. Global online sales are worth 2.5 trillion dollars per year with COVID-19, it could rise to over $4four trillion by next year. Digital giants now pocket the cash this huge cash. However, now governments want a share of the pie. Many countries plan to impose a digital tax and America is protesting. The US wants to investigate countries which plan to introduce digital taxes. It says this is an instrument to target American tech giants. WATCH: × But the debate is still on, although the real impact is likely to be felt by consumers and small traders if taxes are imposed on digital transactions, companies will surely look to transfer the burden to their customers be it online shoppers, online advertisers, online traders - many of whom run medium and small scale companies. Ultimately, they will have to indirectly pay the digital levies. The US argues many of the American tech companies are already compliant with the respective country's tax regime. So, there's no need for an additional tax. The US is targeting some of the world's most valuable online markets, for American tech companies that's where the impact of taxes will be felt the most. The list of countries includes India, these countries say American tech giants evade taxes by basing themselves in low-tax countries. Their global supply chains put the local online platforms at a disadvantage. To be fair it is not unique to online companies. Every other business ranging from power generators to shoemakers uses such ploys to gain a foothold in newer markets and to save taxes. America says it will investigate digital taxes to protect its companies. It's not aggression, just self interest but what about the self interest of other countries? How can $4 trillion worth of transactions be left untaxed? No country with a large market and multiplying online sales will give up the chance. So far, the US has said the investigation is going to be consultative meaning countries will get a chance to defend their digital tax policy. However, the fear is it may spark another trade war with the US this time targetting its allies - the EU, UK, France which has postponed the collection of digital tax to 2021. Over 140 countries have come together to try and find a solution to the problem of digital tax but can they avert a digital trade war?

Now, US targets allies including India over digital tax

The U.S. is planning to investigate countries over digital tax. From the European Union to India - everybody is a target. U.S. President Donald Trump claims American tech companies are being unfairly targetted. WION's Palki Shama gets you the story.

Gravitas: U.S. probe over Digital Tax | A new trade war?

Britain said on Monday it would consider opposition to its plan to impose a new digital tax on big tech companies like Google, Facebook and Amazon as part of its ambition to agree a free trade deal with the United States.

Britain said on Monday it would consider opposition to its plan to impose a new digital tax on big tech companies like Google, Facebook and Amazon as part of its ambition to agree a free trade deal with the United States. A 2% levy on the money major tech firms make from British users had been expected to be introduced next month. It has been strongly opposed by Washington, however, which has said any such tax would be discriminatory and inappropriate. "We note comments regarding digital taxation and will consider this as part of our policy development," the British government said in its mandate for trade talks with the United States. In January, U.S. Treasury Secretary Steven Mnuchin said the United States would retaliate against any unilateral move to tax the world's biggest technology firms. "If people want to just arbitrarily put taxes on our digital companies, we'll consider arbitrarily putting taxes on car companies," he said. Asked about the digital tax on Monday, Prime Minister Boris Johnson's spokesman said the government's plans had not changed. "We set out that it's our intention to find a global solution to this issue. That is what we're working towards. In the meantime we have put forward proposals for a digital services tax," the spokesman said. The Organisation for Economic Cooperation and Development (OECD) is working to develop international rules to make digital companies pay tax where they do business, rather than where they register subsidiaries. It wants to agree on the technical details of such a tax by July. France had considered a similar digital tax, but it agreed in January to suspend down payments after Washington threatened to retaliate with tariffs on French wine. Britain is likely to provide more details on its proposal when finance minister Rishi Sunak presents his budget on March 11. Asked if the tax was due to come in in April, Johnson's spokesman said: "I think that's right".

UK to consider opposition to digital tax in pursuit of US trade deal

The United States&nbsp;on&nbsp;Monday threatened to impose&nbsp;tariffs&nbsp;of up to&nbsp;100 per cent on&nbsp;$2.4 billion on&nbsp;<a href="https://www.wionews.com/world/dont-mix-digital-taxes-and-wine-tariffs-france-urges-trump-238861">French&nbsp;goods</a>&nbsp;in retaliation for a&nbsp;digital&nbsp;services&nbsp;tax&nbsp;it says is discriminatory.

French&nbsp;sparkling wine, yogurt and Roquefort cheese are&nbsp;on&nbsp;the list of&nbsp;goods&nbsp;that could be targeted as soon as mid-January after a report from the&nbsp;US&nbsp;Trade Representative's office found the&nbsp;digital&nbsp;tax&nbsp;penalises American tech companies such as Google, Apple, Facebook and Amazon.

The decision "sends a clear signal that the United States will take action against&nbsp;digital&nbsp;tax&nbsp;regimes that discriminate or otherwise impose undue burdens&nbsp;on&nbsp;US&nbsp;companies,"&nbsp;US&nbsp;Trade Representative Robert Lighthizer said in a statement.

Lighthizer also warned that Washington was considering widening the investigation to look into similar taxes in Austria, Italy, and Turkey.

"The USTR is focused&nbsp;on&nbsp;countering the growing protectionism of EU member states, which unfairly targets&nbsp;US&nbsp;companies, whether through&nbsp;digital&nbsp;services taxes or other efforts that target leading&nbsp;US&nbsp;digital&nbsp;services companies," he said.

Watch: Trump says US to hit France with 'substantial action for digital tax'

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The announcement came just hours before President Donald Trump is due to meet his&nbsp;French&nbsp;counterpart Emmanuel Macron&nbsp;on&nbsp;the sidelines of the NATO summit in London&nbsp;on&nbsp;Tuesday.

The&nbsp;French&nbsp;tax, enacted earlier this year, imposes a three per cent levy&nbsp;on&nbsp;the revenues earned by technology firms in France, which often come from online advertising and other&nbsp;digital&nbsp;services.&nbsp;

The&nbsp;tax&nbsp;affects companies with at least 750 million euros ($830 million) in annual global revenue&nbsp;on&nbsp;their&nbsp;digital&nbsp;activities.

The&nbsp;French&nbsp;tax&nbsp;targets revenue instead of profits, which are often reported by tech giants in low-tax&nbsp;jurisdictions like Ireland in a practice that has enraged governments.&nbsp;

The USTR report "concluded that France's&nbsp;Digital&nbsp;Services&nbsp;Tax&nbsp;(DST) discriminates against&nbsp;US&nbsp;companies, is inconsistent with prevailing principles of international&nbsp;tax&nbsp;policy, and is unusually burdensome for affected&nbsp;US&nbsp;companies."

After the&nbsp;tax&nbsp;was enacted, Trump in July vowed "substantial" retaliation for the&nbsp;French&nbsp;measure.&nbsp;

The USTR has scheduled public hearings&nbsp;on&nbsp;the proposal to imposes "duties of up to&nbsp;100 per cent on&nbsp;certain&nbsp;French&nbsp;products," and the possibility of "imposing fees or restrictions&nbsp;on&nbsp;French&nbsp;services."

The last date to submit comments&nbsp;on&nbsp;the proposed actions is January 14, and "USTR expects to proceed expeditiously thereafter."

Roquefort, not Bordeaux

The list of&nbsp;French&nbsp;products subject to potential duties includes cosmetics, porcelain, soap, handbags, butter, and several kinds of cheeses, including Roquefort, Edam and Gruyere.

However, despite <a href="https://www.wionews.com/world/frances-macron-discussed-need-for-broad-digital-tax-deal-with-trump-elysee-238773">Trump's repeated threats to retaliate against&nbsp;French&nbsp;wines</a>, only sparkling wine made the tariff list.

Industry groups welcomed the report, with the Information Technology and Innovation Foundation saying in a statement that France's&nbsp;tax&nbsp;is "narrowly and inappropriately targeted to raise revenue only from the largest companies in a small set of industries, many of them American."

While applauding the USTR investigation, the Information Technology Industry Council's vice president of policy Jennifer McCloskey said the group would prefer to avoid "a strong trade response."

"We respectfully urge the United States, France, and all participating governments&nbsp;to focus&nbsp;on&nbsp;a successful and lasting&nbsp;tax&nbsp;policy resolution" at the Organisation for Economic Cooperation and Development (OECD), she said in a statement.

So far, efforts to find a global solution to the dispute&nbsp;over&nbsp;<a href="https://www.wionews.com/world/trump-slams-macron-over-digital-tax-on-us-tech-giants-threatens-reciprocal-action-against-french-wine-238733">digital&nbsp;taxes</a> have not been successful.

Last month, G20 ministers meeting in Washington opened talks&nbsp;on&nbsp;an international system to&nbsp;tax&nbsp;global tech giants that the OECD hopes would take effect by June.

In an interview Monday prior to the USTR announcement,&nbsp;French&nbsp;Finance Minister Bruno Le Maire accused Washington of losing interest in such a deal.

"Having demanded an international solution from the OECD, it (Washington) now isn't sure it wants one," Le Maire told France Inter radio.

"We can see that the United States is shifting into reverse."

Public outrage has grown&nbsp;over&nbsp;the practice of profit shifting, which critics say deprives governments of their fair share of&nbsp;tax&nbsp;revenue.

The United States on Monday threatened to impose tariffs of up to 100 per cent on $2.4 billion on French goods in retaliation for a digital services tax it says is discriminatory.

The United States on Monday threatened to impose tariffs of up to 100 per cent on $2.4 billion on French goods in retaliation for a digital services tax it says is discriminatory. French sparkling wine, yogurt and Roquefort cheese are on the list of goods that could be targeted as soon as mid-January after a report from the US Trade Representative's office found the digital tax penalises American tech companies such as Google, Apple, Facebook and Amazon. The decision "sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on US companies," US Trade Representative Robert Lighthizer said in a statement. Lighthizer also warned that Washington was considering widening the investigation to look into similar taxes in Austria, Italy, and Turkey. "The USTR is focused on countering the growing protectionism of EU member states, which unfairly targets US companies, whether through digital services taxes or other efforts that target leading US digital services companies," he said. Watch: Trump says US to hit France with 'substantial action for digital tax' The announcement came just hours before President Donald Trump is due to meet his French counterpart Emmanuel Macron on the sidelines of the NATO summit in London on Tuesday. The French tax, enacted earlier this year, imposes a three per cent levy on the revenues earned by technology firms in France, which often come from online advertising and other digital services. The tax affects companies with at least 750 million euros ($830 million) in annual global revenue on their digital activities. The French tax targets revenue instead of profits, which are often reported by tech giants in low-tax jurisdictions like Ireland in a practice that has enraged governments. The USTR report "concluded that France's Digital Services Tax (DST) discriminates against US companies, is inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected US companies." After the tax was enacted, Trump in July vowed "substantial" retaliation for the French measure. The USTR has scheduled public hearings on the proposal to imposes "duties of up to 100 per cent on certain French products," and the possibility of "imposing fees or restrictions on French services." The last date to submit comments on the proposed actions is January 14, and "USTR expects to proceed expeditiously thereafter." Roquefort, not Bordeaux The list of French products subject to potential duties includes cosmetics, porcelain, soap, handbags, butter, and several kinds of cheeses, including Roquefort, Edam and Gruyere. However, despite Trump's repeated threats to retaliate against French wines, only sparkling wine made the tariff list. Industry groups welcomed the report, with the Information Technology and Innovation Foundation saying in a statement that France's tax is "narrowly and inappropriately targeted to raise revenue only from the largest companies in a small set of industries, many of them American." While applauding the USTR investigation, the Information Technology Industry Council's vice president of policy Jennifer McCloskey said the group would prefer to avoid "a strong trade response." "We respectfully urge the United States, France, and all participating governments to focus on a successful and lasting tax policy resolution" at the Organisation for Economic Cooperation and Development (OECD), she said in a statement. So far, efforts to find a global solution to the dispute over digital taxes have not been successful. Last month, G20 ministers meeting in Washington opened talks on an international system to tax global tech giants that the OECD hopes would take effect by June. In an interview Monday prior to the USTR announcement, French Finance Minister Bruno Le Maire accused Washington of losing interest in such a deal. "Having demanded an international solution from the OECD, it (Washington) now isn't sure it wants one," Le Maire told France Inter radio. "We can see that the United States is shifting into reverse." Public outrage has grown over the practice of profit shifting, which critics say deprives governments of their fair share of tax revenue.

United States threatens France with 100% tariffs on goods over digital tax

US President Donald Trump on Friday accused his French counterpart<a href="https://www.wionews.com/world/donald-trump-has-discussed-iran-nuclear-standoff-with-macron-white-house-234187"> Emmanuel Macron </a>of "foolishness" over a move to tax global tech giants, promising substantial retaliation which he hinted could target French wine.

"France just put a digital tax on our great American technology companies," Trump tweeted about the law passed this month that is set to affect US giants Google, Apple, Facebook and Amazon.

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France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1154791664625606657?ref_src=twsrc%5Etfw">July 26, 2019</a></blockquote>
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"If anybody taxes them, it should be their home Country, the USA," he added. "We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"

Earlier, the US president had tweeted that Apple will no longer be given tariff waivers or relief for Mac Pro parts which were made in China.

Trump's comments came after reports the US tech giant was seeking an exemption from tariffs for the high-end computer, which in the past had been made in the United States. Apple is reportedly now shifting production to China.

"Make them in the USA, no tariffs!" the US president tweeted. Apple shares dipped slightly as Trump tweeted.&nbsp;

The move comes amid growing trade frictions between the two economic powers. Trump has threatened to slap punitive tariffs on more goods to press Beijing to accept more imports.

According to reports, Apple has chosen a Taiwanese contractor, Quanta Computer Inc., to manufacture the $6,000 desktop computer near Shanghai. 
&nbsp;

US President Donald Trump on Friday accused his French counterpart Emmanuel Macron of "foolishness" over a move to tax global tech giants, promising substantial retaliation which he hinted could target French wine.

US President Donald Trump on Friday accused his French counterpart Emmanuel Macron of "foolishness" over a move to tax global tech giants, promising substantial retaliation which he hinted could target French wine. "France just put a digital tax on our great American technology companies," Trump tweeted about the law passed this month that is set to affect US giants Google, Apple, Facebook and Amazon. France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine! — Donald J. Trump (@realDonaldTrump) July 26, 2019 × "If anybody taxes them, it should be their home Country, the USA," he added. "We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!" Earlier, the US president had tweeted that Apple will no longer be given tariff waivers or relief for Mac Pro parts which were made in China. Trump's comments came after reports the US tech giant was seeking an exemption from tariffs for the high-end computer, which in the past had been made in the United States. Apple is reportedly now shifting production to China. "Make them in the USA, no tariffs!" the US president tweeted. Apple shares dipped slightly as Trump tweeted. The move comes amid growing trade frictions between the two economic powers. Trump has threatened to slap punitive tariffs on more goods to press Beijing to accept more imports. According to reports, Apple has chosen a Taiwanese contractor, Quanta Computer Inc., to manufacture the $6,000 desktop computer near Shanghai.

Trump slams Macron over digital tax on US tech giants, threatens 'reciprocal action' against French wine

Group of 20 finance ministers agreed on Saturday to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes, a copy of the bloc's draft communique obtained by Reuters showed.

Facebook, Google, Amazon, and other large technology firms face criticism for cutting their tax bills by booking profits in low-tax countries regardless of the location of the end customer. Such practices are seen by many as unfair.

The new rules would mean higher tax burdens for large multinational firms but would also make it harder for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates.

"We welcome the recent progress on addressing the tax challenges arising from digitization and endorse the ambitious program that consists of a two-pillar approach," the draft communique said. "We will redouble our efforts for a consensus-based solution with a final report by 2020."

Britain and France have been among the most vocal proponents of proposals to tax big tech companies that focus on making it more difficult to shift profits to low-tax jurisdictions, and to introduce a minimum corporate tax.

This has put the two countries at loggerheads with the United States, which has expressed concern that US Internet companies are being unfairly targeted in a broad push to update the global corporate tax code.

"The United States has significant concerns with the two corporate taxes proposed by France and the UK," US Treasury Secretary Steven Mnuchin said on Saturday at a two-day meeting of G20 finance ministers in the Japanese city of Fukuoka.

"It sounds like we have a strong consensus" about the goals of tax reform, Mnuchin later said.

"So now we need to just take the consensus across here and deal with technicalities of how we turn this into an agreement."

Mnuchin spoke at a panel on global taxation at the G20 after the French and British finance ministers voiced sympathy with his concerns that new tax rules do not discriminate against particular firms.

Big Internet companies say they follow tax rules but have paid little tax in Europe, typically by channelling sales via countries such as Ireland and Luxembourg, which have light-touch tax regimes.

The G20's debate on changes to the tax code focus on two pillars that could be a double whammy for some companies.

The first pillar is dividing up the rights to tax a company where its goods or services are sold even if it does not have a physical presence in that country.

If companies are still able to find a way to book profits in low tax or offshore havens, countries could then apply a global minimum tax rate to be agreed under the second pillar.

The path to a final agreement is still fraught with difficulty because of disagreement on a common definition of digital business and on how to distribute tax authority among different countries.

"There are differences between the United States and the United Kingdom over pillar one. As for pillar two, there are also differences in views within the Group of 7," said a senior Japanese finance ministry official present at the G20.

The G7 likely will not issue any communique at a meeting of the world's leading economic powers next month, according to the official. Still, several finance ministers at the G20 said on Saturday they needed to act quickly to correct unfair corporate tax codes or risk being punished by voters.

"We cannot explain to a population that they should pay their taxes when certain companies do not because they shift their profits to low-tax jurisdictions," French Finance Minister Bruno Le Maire said during the panel discussion.

The US government has voiced concern in the past that the European campaign for a "digital tax" unfairly targets US tech giants.

After listening to presentations by Le Maire and British finance minister Philip Hammond, Mnuchin said on Saturday G20 countries should issue "marching orders" to their respective finance ministries to negotiate the technical aspects of a deal.

Earlier this year, countries and territories agreed to a roadmap aimed at overhauling international tax rules that have been overtaken by the development of digital commerce.

Group of 20 finance ministers agreed on Saturday to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes, a copy of the bloc's draft communique obtained by Reuters showed.

Group of 20 finance ministers agreed on Saturday to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes, a copy of the bloc's draft communique obtained by Reuters showed. Facebook, Google, Amazon, and other large technology firms face criticism for cutting their tax bills by booking profits in low-tax countries regardless of the location of the end customer. Such practices are seen by many as unfair. The new rules would mean higher tax burdens for large multinational firms but would also make it harder for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates. "We welcome the recent progress on addressing the tax challenges arising from digitization and endorse the ambitious program that consists of a two-pillar approach," the draft communique said. "We will redouble our efforts for a consensus-based solution with a final report by 2020." Britain and France have been among the most vocal proponents of proposals to tax big tech companies that focus on making it more difficult to shift profits to low-tax jurisdictions, and to introduce a minimum corporate tax. This has put the two countries at loggerheads with the United States, which has expressed concern that US Internet companies are being unfairly targeted in a broad push to update the global corporate tax code. "The United States has significant concerns with the two corporate taxes proposed by France and the UK," US Treasury Secretary Steven Mnuchin said on Saturday at a two-day meeting of G20 finance ministers in the Japanese city of Fukuoka. "It sounds like we have a strong consensus" about the goals of tax reform, Mnuchin later said. "So now we need to just take the consensus across here and deal with technicalities of how we turn this into an agreement." Mnuchin spoke at a panel on global taxation at the G20 after the French and British finance ministers voiced sympathy with his concerns that new tax rules do not discriminate against particular firms. Big Internet companies say they follow tax rules but have paid little tax in Europe, typically by channelling sales via countries such as Ireland and Luxembourg, which have light-touch tax regimes. The G20's debate on changes to the tax code focus on two pillars that could be a double whammy for some companies. The first pillar is dividing up the rights to tax a company where its goods or services are sold even if it does not have a physical presence in that country. If companies are still able to find a way to book profits in low tax or offshore havens, countries could then apply a global minimum tax rate to be agreed under the second pillar. The path to a final agreement is still fraught with difficulty because of disagreement on a common definition of digital business and on how to distribute tax authority among different countries. "There are differences between the United States and the United Kingdom over pillar one. As for pillar two, there are also differences in views within the Group of 7," said a senior Japanese finance ministry official present at the G20. The G7 likely will not issue any communique at a meeting of the world's leading economic powers next month, according to the official. Still, several finance ministers at the G20 said on Saturday they needed to act quickly to correct unfair corporate tax codes or risk being punished by voters. "We cannot explain to a population that they should pay their taxes when certain companies do not because they shift their profits to low-tax jurisdictions," French Finance Minister Bruno Le Maire said during the panel discussion. The US government has voiced concern in the past that the European campaign for a "digital tax" unfairly targets US tech giants. After listening to presentations by Le Maire and British finance minister Philip Hammond, Mnuchin said on Saturday G20 countries should issue "marching orders" to their respective finance ministries to negotiate the technical aspects of a deal. Earlier this year, countries and territories agreed to a roadmap aimed at overhauling international tax rules that have been overtaken by the development of digital commerce.

G20 agrees to push ahead with digital tax: Report

French lawmakers on Monday approved a new tax on digital giants such as Facebook and Apple that has angered the United States, with Finance Minister Bruno Le Maire boasting that France was proud to be in the vanguard of such a move.

The United States has urged its NATO ally to drop the plan, with US Secretary of State Mike Pompeo warning last week that it would hurt both the American firms and the French citizens who use the platforms.

The measure was approved by 55 votes against four in the National Assembly, with five abstentions. It will then be put to vote in the Senate, or upper house, before becoming law.&nbsp;

The legislation, dubbed "Gafa" after Google, Amazon, Facebook and Apple, comes amid rising public outrage at the minimal tax paid by some of the world's richest firms.

"France is honoured to be leading on such subjects," Le Maire told parliament before the vote, saying that the draft constituted a "step... towards fairer and more efficient taxation for the 21st century."

Responding to the criticism from the United States, Le Maire said France was "determined" to press on with the legislation and would be "sovereign" on fiscal issues.

He said it was "unacceptable" that digital giants could make considerable profits from user data so that the "profits are made in France but the taxes are imposed abroad".

Last month, France unveiled the draft legislation to set a three per cent tax on digital advertising, the sale of personal data and other revenue for any technology company that earns more than 750 million euros ($840 million) worldwide each year.

France is seeking to agree the legislation on a national level after a European Union-wide effort was scuttled by low-tax countries such as Ireland, which have wooed big technology firms.

But Le Maire insisted that a "good solution in the long term will be a multilateral solution," vowing not to let up in efforts for an agreement within the Organisation for Economic Cooperation and Development (OECD).

French lawmakers on Monday approved a new tax on digital giants such as Facebook and Apple that has angered the United States, with Finance Minister Bruno Le Maire boasting that France was proud to be in the vanguard of such a move.

French lawmakers on Monday approved a new tax on digital giants such as Facebook and Apple that has angered the United States, with Finance Minister Bruno Le Maire boasting that France was proud to be in the vanguard of such a move. The United States has urged its NATO ally to drop the plan, with US Secretary of State Mike Pompeo warning last week that it would hurt both the American firms and the French citizens who use the platforms. The measure was approved by 55 votes against four in the National Assembly, with five abstentions. It will then be put to vote in the Senate, or upper house, before becoming law. The legislation, dubbed "Gafa" after Google, Amazon, Facebook and Apple, comes amid rising public outrage at the minimal tax paid by some of the world's richest firms. "France is honoured to be leading on such subjects," Le Maire told parliament before the vote, saying that the draft constituted a "step... towards fairer and more efficient taxation for the 21st century." Responding to the criticism from the United States, Le Maire said France was "determined" to press on with the legislation and would be "sovereign" on fiscal issues. He said it was "unacceptable" that digital giants could make considerable profits from user data so that the "profits are made in France but the taxes are imposed abroad". Last month, France unveiled the draft legislation to set a three per cent tax on digital advertising, the sale of personal data and other revenue for any technology company that earns more than 750 million euros ($840 million) worldwide each year. France is seeking to agree the legislation on a national level after a European Union-wide effort was scuttled by low-tax countries such as Ireland, which have wooed big technology firms. But Le Maire insisted that a "good solution in the long term will be a multilateral solution," vowing not to let up in efforts for an agreement within the Organisation for Economic Cooperation and Development (OECD).

French MPs approve digital tax, defying US ire

New Zealand said on Monday that it plans to update its laws so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, extending a global effort to bring global tech giants into the tax net.

Prime Minister Jacinda Ardern said the cabinet had agreed to issue a discussion document about how to update the country's tax framework to ensure multinational companies pay their fair share.

"Our current tax system is not fair in the way it treats individual taxpayers, and how it treats multinationals," Ardern told reporters at her weekly post-cabinet news conference.

Highly digitalised companies, such as those offering social media networks, trading platforms, and online advertising, currently earn a significant income from New Zealand consumers without being liable for income tax, the government said in a statement released after the announcement.

The value of cross-border digital services in New Zealand is estimated to be around $1.86 billion.

The revenue estimate for a digital services tax is between NZ$30 million and NZ$80 million, Finance Minister Grant Robertson said in the statement.

Digital services taxes (DST) are generally charged at a flat rate of two to three per cent on the gross revenue earned by a multinational company in that country.

A number of countries including the UK, Spain, Italy, France, Austria and India have enacted or announced plans for a DST. The EU and Australia are also consulting on a DST.

Officials will now finalise the New Zealand discussion document on the matter, which is likely to be publicly released by May 2019.

New Zealand said on Monday that it plans to update its laws so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, extending a global effort to bring global tech giants into the tax net.

New Zealand said on Monday that it plans to update its laws so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, extending a global effort to bring global tech giants into the tax net. Prime Minister Jacinda Ardern said the cabinet had agreed to issue a discussion document about how to update the country's tax framework to ensure multinational companies pay their fair share. "Our current tax system is not fair in the way it treats individual taxpayers, and how it treats multinationals," Ardern told reporters at her weekly post-cabinet news conference. Highly digitalised companies, such as those offering social media networks, trading platforms, and online advertising, currently earn a significant income from New Zealand consumers without being liable for income tax, the government said in a statement released after the announcement. The value of cross-border digital services in New Zealand is estimated to be around $1.86 billion. The revenue estimate for a digital services tax is between NZ$30 million and NZ$80 million, Finance Minister Grant Robertson said in the statement. Digital services taxes (DST) are generally charged at a flat rate of two to three per cent on the gross revenue earned by a multinational company in that country. A number of countries including the UK, Spain, Italy, France, Austria and India have enacted or announced plans for a DST. The EU and Australia are also consulting on a DST. Officials will now finalise the New Zealand discussion document on the matter, which is likely to be publicly released by May 2019.

New Zealand to target online giants with digital tax

<a href="http://www.wionews.com/world/france-pm-philippe-confirms-fuel-tax-suspensions-calls-for-calm-181453">France will forge ahead with its own tax</a> on digital giants in 2019 if the EU fails to agree on how to get the likes of Google and Facebook to pay more tax in Europe, Finance Minister Bruno Le Maire said Thursday.

Le Maire told France 2 television he would give himself "until March" to reach a deal with other EU members on a digital tax, nicknamed the GAFA tax after Google, Apple, Facebook and Amazon.

If the talks fail, "we will do it at the national level in 2019: we will tax digital giants if European states do not take their responsibilities," he said.

On Tuesday, France and Germany agreed on a scaled-back version of the tax in a bid to overcome significant opposition to the plan among some of their EU neighbours.

Under the new plan -- presented as an interim solution while waiting for a global deal brokered by the OECD -- digital giants would pay a three-per cent levy on advertising sales. &nbsp; &nbsp;

The measure, set to come into force in 2021 if a global plan has not been agreed by then, would chiefly target Google and Facebook, which dominate the online advertising market in Europe.

Paris argues it would be a vote winner for mainstream EU parties before European Parliament elections next May, in which anti-Brussels populists could do well.

France's initial proposal had a far wider scope but failed to gain traction, effectively killing the proposal as European tax rules require unanimous backing by all EU members.

Ireland, which hosts the European headquarters of several US tech giants, leads a small group of otherwise mostly Nordic countries that argue the tax will also punish European companies and stoke Washington's anger.

Germany, which firmly backed the plan at first, also expressed reticence after auto giants expressed concern it could damage their digital business models.

France will forge ahead with its own tax on digital giants in 2019 if the EU fails to agree on how to get the likes of Google and Facebook to pay more tax in Europe, Finance Minister Bruno Le Maire said Thursday.

France will forge ahead with its own tax on digital giants in 2019 if the EU fails to agree on how to get the likes of Google and Facebook to pay more tax in Europe, Finance Minister Bruno Le Maire said Thursday. Le Maire told France 2 television he would give himself "until March" to reach a deal with other EU members on a digital tax, nicknamed the GAFA tax after Google, Apple, Facebook and Amazon. If the talks fail, "we will do it at the national level in 2019: we will tax digital giants if European states do not take their responsibilities," he said. On Tuesday, France and Germany agreed on a scaled-back version of the tax in a bid to overcome significant opposition to the plan among some of their EU neighbours. Under the new plan -- presented as an interim solution while waiting for a global deal brokered by the OECD -- digital giants would pay a three-per cent levy on advertising sales. The measure, set to come into force in 2021 if a global plan has not been agreed by then, would chiefly target Google and Facebook, which dominate the online advertising market in Europe. Paris argues it would be a vote winner for mainstream EU parties before European Parliament elections next May, in which anti-Brussels populists could do well. France's initial proposal had a far wider scope but failed to gain traction, effectively killing the proposal as European tax rules require unanimous backing by all EU members. Ireland, which hosts the European headquarters of several US tech giants, leads a small group of otherwise mostly Nordic countries that argue the tax will also punish European companies and stoke Washington's anger. Germany, which firmly backed the plan at first, also expressed reticence after auto giants expressed concern it could damage their digital business models.

France to introduce digital tax if no EU deal

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