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.”

FOLLOW US ON TWITTER SUBSCRIBE TO OUR YOUTUBE CHANNEL
alltechng
Technology is making life more meaningful, improves productivity... We are tech lovers...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

video

iPhone 11Pro and Triple Lens iPads

iPhone 11Pro and Triple Lens iPad...

Bluetooth vulnerability could expose device data to hackers

A fast-acting hacker could be able to weaken the encryption of Bluetooth devices and subsequently snoop on communications or send falsified ones to take...

Nigeria Government changes Twitter handle name

The Nigeria Federal Government has changed the name of its handle on micro blogging site Twitter. It announced this in a tweet on Thursday, noting...

Verve Global Card launches first international transaction in New York

Verve, a leading payments technology and card business in Africa, and Discover Global Network, the payments brand of Discover, has held an event to...

LPG advocate warns ‘bomb-like’ explosions may hit Nigerian homes

Worried by the continued influx of fake and sub-standard Liquefied Petroleum Gas (LPG) cylinders into Nigeria, a cooking gas advocate has warned that Nigerian...