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| The UK denies cutting the tax on digital services |
The UK Treasury has denied reports that it intends to cut taxes on tech companies such as Facebook and Google.
After slow progress in global negotiations over taxing tech giants, the UK imposed a tax on digital services in April, many of which are US companies.
The Sunday Mail reports that Treasury Secretary Rishi Sunak plans to cut taxes. Because it doesn't make a lot of money - about 500 million pounds ($ 654 million) a year - and that could hurt the US trade agreement promotion.
A Treasury spokesperson said, "We have made it clear that this is a temporary tax. Once a suitable comprehensive solution is implemented, the tax will be abolished. We will continue to work." With international partners to achieve this goal. "
Former UK Chancellor of the Exchequer Philip Hammond set a 2% sales tax to ensure that global high-tech companies pay at least a portion of the income (if not profits) tax they earn in the UK. .
Tax restrictions ensure that most of the revenue comes from US tech companies. The tax only applies to companies with an income of £ 25 million. The companies affected include Google, Facebook and Amazon.
Successful European digital companies (such as Spotify) are excluded. Because it does not occupy search engines, social media services, and online markets.
Critics have warned that the internet giants will pass the taxes on to customers. Amazon said it will increase its sales fees from September after failing to negotiate with the government on the digital services tax issue earlier this month.
Amazon has said it has been affected by the digital services tax since its inception, but will change the cost with various fees starting September 1. Over the past few months, US officials in both the private and public sectors have increased taxes on digital services, creating a barrier to any commercial transaction.