EU expected to drop digital tax for Big Tech

In the meantime, the tax has been removed from the list of potential revenue sources

Life

The European Commission appears to be abandoning plans for a digital tax on major tech companies, marking a victory for both American tech giants such as Apple and Meta, as well as for President Trump.

The original idea to introduce a digital tax—intended to help pay off debts incurred during the pandemic—was presented in May and was set to be part of the next seven-year EU budget, which was published on Wednesday, 16 July.

In the meantime, the tax has been removed from the list of potential revenue sources. Tech companies could still face a levy based on a revenue threshold of €50 million within the EU, but they are no longer being specifically targeted as was originally planned.

Instead, the European Commission is considering the following measures: an EU-wide tax on tobacco products (currently taxed at the national level), a levy on discarded electronic equipment, and a corporate tax for companies with annual revenues above €50 million.

Emerce

Read More: Apple Big Tech European Union Meta