U.S. plans action against France to tax tech companies

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The U.S. plans to announce further details in the long battle with France over taxes on tech giants, including Amazon.com Inc, Google Alphabet Inc and Facebook Inc.

The tariff list to be published will be in the range of 500 million US dollars (2.14 billion US dollars) to 700 million US dollars (2.99 billion US dollars) of goods, according to two people familiar with the matter. . Items affected could include levies on French wine, cheeses and handbags.

The United States could make the announcement as early as July 10 and delay the implementation of the duties until France begins collecting its tax later this year, said one of the people.

Robert Lighthizer, the US trade representative, said that such a decision was imminent at an event on July 9, according to Politico.

“We will announce that we are going to take certain sanctions against France, suspend them as if they were suspending the collection of taxes at this time,” the Washington-based website reported, according to Lighthizer during a webcast hosted by Chatham. House, a London-based policy institute.

In early July 9, Secretary of the Treasury, Steven Mnuchin, said that he and Lighthizer had completed a comprehensive review before the July 10 deadline to make a decision within one year of a section 301 investigation. As of early July 9, the couple had not discussed the matter with the president for a final decision, Mnuchin said.

Global agreement

US pulled out of international talks on digital tax deal last month after failing to reach agreement on developing a global levy, Lighthizer said last month at a congressional hearing .

At the time, Treasury Department spokesperson Monica Crowley said in a statement that the United States had suggested “a pause in talks” so that governments could focus on responding to the pandemic of Covid-19 and the reopening of their savings.

The Organization for Economic Co-operation and Development has attempted to reach agreement among nearly 140 countries on a global tax overhaul to determine how multinationals – particularly large technology companies – are taxed in countries where they have users or consumers. An international agreement would prevent dozens of countries from applying their own versions of the levies.

Several European countries – including Austria, France, Spain, Hungary, Italy, Turkey and the United Kingdom – have already announced plans to tax digital services. Many others have discussed the implementation of this and India, in April, expanded such a levy that it uses.

The United States has threatened to retaliate against any nation that imposes levies on the digital revenues of American businesses. Last year, the United States planned to receive about 2.4 billion US dollars (10.3 billion RMB) of French products with customs duties.

Lighthizer announced a series of new tariffs on French products last year in response to the French tax, but delayed implementation to discuss a comprehensive approach. – Bloomberg



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