Germany called for more time to agree a European Union tax overhaul to raise levies on large digital firms, although its Finance Minister Olaf Scholz said a solution was needed soon.
Under a proposal from the European Commission in March, EU states would charge a 3 percent levy on digital revenues of large firms like Google and Facebook that are accused of routing their profits to the bloc’s low-tax states.
The plan is opposed by smaller states like Ireland, and by Nordic governments who fear the tax could stifle innovation and trigger retaliation from the United States, which is home to most of the firms who could be hit by the proposed tax.
“It is necessary to take some time for debate, but we are absolutely willing to find a solution very soon,” Scholz told reporters at a Vienna meeting of EU finance ministers.
After having pushed for the tax, Berlin took a more cautious approach after Scholz took office in March and his latest remark will be closely scrutinized by European Union governments who oppose the new tax, as it may be perceived as showing Germany’s little appetite to the project.
EU officials said Germany wants to make sure the tax does not damage its carmakers, who could face retaliatory measures from international partners, or fall within the scope of the new taxation if their digital revenues increased.

Germany calls for time on EU digital tax, France brokers compromise

Under a proposal, EU states would charge a 3 percent levy on digital revenues of large firms like Google and Facebook that are accused of routing their profits to the bloc’s low-tax states. (Shutterstock)
Reuters, Vienna
Saturday 08 September 2018
Last Update: Wednesday, 20 May 2020 KSA 09:53 - GMT 06:53
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