Home Tech News France passes controversial tax on tech companies

France passes controversial tax on tech companies

- Advertisement -

France has passed a controversial tax on “digital services” that will hit American tech giants, as the United States says it will investigate the plan.

Under the bill, just passed by the French Senate, tech companies with more than €750 million in global revenue and €25 million in French revenue will be required to pay a 3 percent tax on total annual revenue generated by providing services to French users. The move will affect major players like Google, Facebook, and Amazon, and was made as plans for EU-wide tax changes seemed to stall.

- Advertisement -

Even before the bill was passed, the United States said it was launching an investigation into the legislation. In a statement on Wednesday, the Office of the United States Trade Representative (USTR) said the tax and statements from French officials “suggest that France is unfairly targeting the tax at certain US-based technology companies.”

“The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies,” USTR Robert Lighthizer said in the statement, adding that President Trump had ordered the investigation. Once the investigation is complete, according to the statement, the US will decide on a response.

American business groups jumped to slam the French proposal. The US Chamber of Commerce said in a statement that the plan “would harm American businesses and workers.” The Information Technology Industry Council, which counts Apple, Google, Facebook, and Amazon among its members, said the legislation was “an ill-disguised effort to target companies that are thought to be too powerful, too profitable, and too American.”

Technology is making life more meaningful, improves productivity... We are tech lovers...


Please enter your comment!
Please enter your name here

Must Read

T-bills – Federal government to pay investors N847.43

The Federal Government is scheduled to pay N847.43m to investors in the first quarter of 2020 as treasury bills mature. The Central Bank of Nigeria,...

Uber Reveals 3,000 sexual assaults in US

Uber, as part of a long-anticipated safety report, revealed that more than 3,000 sexual assaults were reported during its U.S. rides in 2018. That figure...

Sanwo-Olu launches N250M tech start ups funds

Lagos State Government has launched a N250 million seed capital for the development of innovation, technology start-ups as well as young innovators in the...

Winner of Nigeria Stock Exchange essay competition emerges

A student of Grandmates Schools in Isolo, Lagos, Adesewa Adeniyi, has won the first prize at the Nigerian Stock Exchange 2019 Essay Competition for...

Nigerian Senate passes 2020 Budget after eight weeks

The Senate on Thursday passed the 2020 budget eight weeks after it was presented to the Joint Session of the National Assembly by President...