US condemns digital taxes on US tech firms by Italy, India, Turkey

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The United States on Wednesday criticized taxes imposed on tech companies by Italy, India and Turkey, but held off on hitting the countries with punitive tariffs.

The US Trade Representative (USTR) said the Digital Service Taxes adopted by the three countries “discriminates against US companies, is inconsistent with prevailing principles of international taxation, and burden or restricts US commerce.”

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However, “USTR is not taking any specific actions in connection with the findings at this time but will continue to evaluate all available options.”

Read more: France’s finance minister to push digital tax in first contact with Biden officials

The decision comes on the same day that 25 percent tariffs on $1.3 billion of French goods, including cosmetics and handbags by renowned brands, were due to take effect, in retaliation over that country’s tax targeting tech companies.

France has not backed down from its plan to tax online giants including Google, Amazon, Facebook and Apple.

France and other European countries imposed the levies after intense public pressure to make US multinationals pay a larger share of their revenues in taxes in the countries where they operate.

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