Britain introduces the first of its kind digital taxes

The UK government presented the idea of ​​introducing the so- a digital tax that will be imposed on the profits of major technology companies. This is a move to transform the classic, industry tax code into one that fits for the digital era.

The new charges are suggested as such moves have been made by other countries in attempting to link digital services to the tax system, services provided by companies such as Alphabet (Google) and Facebook. Governments hope to be able to "catch up" on the profits of digital service companies because there is a tendency for economic activity to move online.

Major US technology companies are heavily criticized because they keep extremely low accountability for profits at the local level. And the experience at the international level to create a standard how and where to charge these digital services is progressing slowly. That's why Britain on Monday announced it was losing patience. As part of the annual budget debate, I voiced my intention in a statement to create a plan for the introduction of digital charges for major technology companies by 2020.

In Spain, this proposal has already been made but is yet to be discussed and voted on the parliamentary level. Britain puts pressure on strong economies such as the United States to speed up the process at a local level and, of course, globally. The Organization for Economic Cooperation and Development, established between the rich countries, has led the negotiations on the creation of international digital charges.

Of course, this solution also encounters resistance from various lobbyists. According to them, this will lead to doubling corporate taxes, which will hinder international trade and discourage investment. Technological industry, of course, opposes this decision.

Source information: The Wall Street Journal

Source photo: Pixabay

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