 |
| The UK plans to cut taxes on digital services |
British Treasury Secretary Rishi Sunak intends to cut taxes on digital services for big tech companies (such as Facebook and Google) because he thinks this is too much and will not and will not be able to raise so much money undermining momentum to boost business deals with the United States. .
According to the Sunday Post report, the digital services tax for April will be waived after Sunak concluded that it must add a total of 500 million pounds ($ 654 million) each year. - It represents only a small portion of the additional £ 200 billion debt the country has accumulated as a result of the Coronavirus pandemic.
The Digital Services Tax is also a burden on Secretary of International Trade Liz Truss's trade negotiations with Washington, as the US government insists it is being wrongly targeted against US tech companies.
It also represents a potential obstacle to a post-Brexit bilateral trade deal between the United Kingdom and the United States.
At a cost of just one billion pounds, Rishi concluded that given the anger of Trump and Washington, this is a bigger problem than it should be.
Former British Chancellor of the Exchequer Philip Hammond (Philip Hammond) set the tax rate, which is levied on 2% of sales, to ensure that global high-tech companies pay at least a portion of the tax on income (if not profits), they made 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 they do not use search engines, social media services, and online marketplaces.
Critics have warned that the internet giants will pass on tax expenses to customers. Amazon said it would increase its sales fees from September after failing to negotiate with the government on the digital services tax issue earlier this month.
Amazon said: It has been under the influence of the digital services tax since its inception, but it will delay costs with various fees from September 1.
In 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.
According to the newspaper, a representative of the Treasury Department said: We made clear that this is a temporary tax. Once a suitable global solution is found, it will be canceled. We will continue to work with international partners to achieve this goal.
After negotiations on a global digital tax ended, countries around the world decided to impose their own taxes on the internet giants, and the United States called in June for an end to international talks on the issue.