France Wants EU Proposal on Digital Taxation Early Next Year
France Wants EU Proposal on Digital Taxation Early Next Year
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France wants the European Union to make a formal proposal for a digital tax in the first quarter of 2021 as it’s concerned the U.S. will block negotiations for an international agreement, according to Finance Minister Bruno Le Maire.
The European Commission had said it would submit a proposal on taxing companies such as Facebook Inc. and Alphabet Inc.’s Google at the end of 2020 in the event of a failure of international talks hosted by the Organisation for Economic Co-operation and Development.
Le Maire said those talks have stalled as the U.S. keeps changing position on what should be the basis for a digital tax, and is insisting on a voluntary element that is unacceptable to others.
“We have significant disagreements that I don’t expect to be resolved by the end of the year,” Le Maire said Wednesday on a telephone conference with reporters. “If the U.S. obstruction is confirmed by the end of the year, we are counting on the European Union to make a formal proposal on digital tax in the first quarter of 2021.”
The clashes over digital tax are fueling transatlantic trade tensions, prompting the U.S. to announce 25% tariffs on French goods in July. That was in retaliation for France’s national digital tax, which Washington says unfairly discriminates against American companies.
The implementation of the levies was delayed for 180 days while France suspended collection of its digital services tax awaiting the negotiations at the OECD.
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