Sunday, Aug 09, 2020 | Last Update : 03:00 PM IST

137th Day Of Lockdown

Maharashtra49026232728117092 Tamil Nadu2850242275754690 Andhra Pradesh2069601204641842 Karnataka164924842322998 Delhi1427231282324082 Uttar Pradesh113378668341981 West Bengal89666630601954 Bihar7179446294400 Gujarat68855517922604 Assam5549737225132 Rajasthan4941835186763 Odisha4255028698292 Haryana4005433444467 Madhya Pradesh3729827621962 Kerala3170019147103 Jammu and Kashmir2392716218449 Punjab2193014040539 Jharkhand165427503154 Chhatisgarh11408831987 Uttarakhand89015731112 Goa7947559570 Telangana751354330615 Tripura6014408437 Puducherry5123291475 Manipur3466192610 Himachal Pradesh3206200813 Nagaland26578247 Arunachal Pradesh204913263 Chandigarh137482023 Meghalaya10234236 Sikkim8544061 Mizoram5672890
  Business   Companies  18 Jul 2019  G7 ministers reach consensus on taxing tech giants like Google, Amazon: France

G7 ministers reach consensus on taxing tech giants like Google, Amazon: France

AFP
Published : Jul 18, 2019, 5:47 pm IST
Updated : Jul 18, 2019, 6:03 pm IST

G7 ministers 'fully supported a two-pillar solution to be adopted by 2020', said a statement from France.

The French parliament earlier this month passed a new law that will tax digital giants on revenue accrued inside the country, even if their European headquarters are elsewhere, in a move that will affect huge US groups Google, Apple, Facebook, Uber and Amazon. (Photo: File | ANI)
 The French parliament earlier this month passed a new law that will tax digital giants on revenue accrued inside the country, even if their European headquarters are elsewhere, in a move that will affect huge US groups Google, Apple, Facebook, Uber and Amazon. (Photo: File | ANI)

Chantilly: G7 finance ministers meeting in France on Thursday agreed a plan for a tech tax on digital companies such as Google, Apple, Facebook, Uber and Amazon that will set a minimum level of taxation for them.

Ministers "fully supported a two-pillar solution to be adopted by 2020", said a statement from France which holds the rotating chairmanship of the group of world's most developed countries.

 

"New rules should be developed to address new business models... allowing companies to do business in a territory without any physical presence," it said.

"Ministers agreed that a minimum level of effective taxation... would contribute to ensuring that companies pay their fair share of tax," the statement said.

A French official, who asked not to be named, said the tax level would have to be agreed in the future.

"The tax level to be set would depend on concrete design features of the rules," the statement said.

"The G7 looks forward to further progress in the context of the G20 and a global agreement on the outlines of the architecture by January 2020," it added.

 

The consensus reached at the G7 -- which sources said came after talks that lasted into the early hours of Thursday morning -- came after a bitter dispute between France and the United States in the last weeks.

The French parliament earlier this month passed a new law that will tax digital giants on revenue accrued inside the country, even if their European headquarters are elsewhere, in a move that will affect huge US groups Google, Apple, Facebook, Uber and Amazon.

The move infuriated President Donald Trump and the US announced an unprecedented probe against France which could trigger the imposition of tariffs.

The plan agreed on Thursday would have to be further developed by the G20 group of top 20 economies and then implemented under the aegis of the Organisation for Economic Cooperation and Development (OECD).

 

Meanwhile, the G7 ministers agreed that new cryptocurrencies such as Facebook's Libra risked destabilising the international monetary system and were not ready to be implemented.

"They agreed that projects such as Libra may affect monetary sovereignty and the functioning of the international monetary system," France said in a statement.

French Finance Minister Bruno Le Maire told reporters that all the members of the G7 expressed "serious worry" about this project.

"It poses serious difficulties -- technical and political," he said. "There are rules that have to be respected by everyone. So far this is not the case for Libra," he added.

 

Tags: tech tax, google, amazon, facebook, technology policy, uber, g7, g20, oecd, donald trump
Location: France, Île-de-France, Paris