Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK plans to drop 'Facebook tax', Mail on Sunday says

Published 08/23/2020, 05:03 AM
Updated 08/23/2020, 05:05 AM
© Reuters. FILE PHOTO: A 3D-printed Facebook logo is seen placed on a keyboard in this illustration

© Reuters. FILE PHOTO: A 3D-printed Facebook logo is seen placed on a keyboard in this illustration

LONDON (Reuters) - British finance minister Rishi Sunak plans to drop a tax on technology companies such as Facebook (O:FB) and Google (O:GOOGL) because it does not raise much money and could hurt a push for a U.S. trade deal, the Mail on Sunday newspaper said.

Britain introduced the digital services tax in April after slow progress in global negotiations over how to tax tech giants, many of which are U.S. companies.

The tax is expected to raise about 500 million pounds ($654 million) a year for Britain's public finances.

That represents only a fraction of the 200 billion pounds in extra debt the country has racked up since the start of the COVID-19 pandemic.

The tax is also a potential impediment to a post-Brexit bilateral trade deal between Britain and the United States.

France and other countries have adopted or are considering similar taxes.

No one was immediately available for comment at Britain's finance ministry.

The Mail on Sunday quoted a finance ministry representative as saying: "We've been clear it's a temporary tax that will be removed once an appropriate global solution is in place, and we continue to work with our international partners to reach that goal."

© Reuters. FILE PHOTO: A 3D-printed Facebook logo is seen placed on a keyboard in this illustration

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.