EU Ministers Back Down on EU Tech Tax Encouraged by Macron

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EU plans for a provisional Europe-wide income tax on digital businesses that would hit large US digital companies, appear to have taken a step back this week leaving disappointment to a policy championed by President Emmanuel Macron of France. As Member State Ministers at a recent ECOFIN meeting recognised that the US administration may see it as a hostile act.

As the European Commission unveiled its proposals would raise EUR €5B for the EU annually; Berlin qualified its initial support for the idea, expressing cynicism regarding the principle of a narrow levy targeting digital earnings.