Tech giant companies like Google, Facebook, Amazon, Apple earns a tremendous amount of revenues from European users. However, yesterday France declared that they are going to levy new taxes on these big tech companies from the beginning of the next year. French finance minister Bruno Le Maire said that the country is going to collect a new tax on Google, Apple, Facebook and Amazon from 1st January 2019. The state is expecting at least $570 million of additional tax revenues from these big tech companies. France along with Germany had already tried their best to convince other EU states to tax on big tech companies which are sheltering their profits. However, there was no unanimous consent from all the EU states for levying additional taxes on tech companies, and that’s why France is now solely going to charge additional taxon such big companies.
The French finance minister said that “ The new tax is going to be introduced from 1st January 2019 regardless of whatever happens and it will be for the whole year.’’ On the other hand, the UK has also shown some signs of additional taxing tech companies which are sheltering their profits due to which it’s getting hard for the government to earn tax revenues from big companies. There are some countries like Germany, England which are considering to follow the path of France and it seems like soon these countries will also implement a new tax structure for tech companies.
On the other hand, US is also from the last couple of months trying to levy a new tax on tech companies from Silicon Valley to maintain fair competition in the tech industry. Many economists suggest that it’s essential to earn the right amount of tax revenues from those companies which have a huge dominance in the industry.