EU Parliament puts digital tax back on the agenda
The EU Parliament wants a digital tax for tech giants - contradicting the Commission's course in the 2028-2034 budget.
The European Parliament is bringing the much-discussed digital tax for large technology companies back into play - and is thus calling into question the EU Commission's original backtrack.
Where is the money?
In its position on the multi-annual EU budget for the years 2028 to 2034, the European Parliament is calling for new own resources. This explicitly includes a levy for large digital companies such as Google, Meta, Amazon and others. The idea behind this is clear: companies that generate high turnover across Europe with digital business models should contribute more to the financing of the EU. Many MEPs assume that these companies have so far paid comparatively little tax in Europe in relation to their economic importance.
The proposed digital tax could bring in billions per year. For the Parliament, this is a key element in broadening the financing of the EU budget. At the same time, MEPs want to reduce the dependence on indirect articles from the Member States. The revenue from such a levy would flow directly into the EU budget.
Commission wanted to scrap digital tax
The Parliament's position contrasts with earlier considerations by the EU Commission. In an earlier draft budget, a digital tax was no longer considered. The difficult diplomatic situation with the United States under the Trump administration - where many of the technology companies affected are based - is likely to have played a key role in this.
In addition, the Commission focussed more on international negotiations on the taxation of large companies. The aim was to find global solutions and avoid national or European solo efforts. Critical voices, however, accused the Commission of not utilising potential revenue for the EU.
National solo efforts on the rise
The topic is also gaining weight in Germany. A recently submitted motion by the Bündnis 90/Die Grünen party calls for big tech to be taxed appropriately. Especially those companies that generate high revenues with digital content and advertising business.
Germany is not the only country considering its own models. In Poland and France, the respective governments are also working on a tax on certain sales of large technology companies. The focus is on digital services, where value creation is often difficult to grasp. The planned tax is intended to target areas where comparatively low tax payments have been made to date.
France already has regulations on the taxation of digital business models, which are now to be further developed. For years, France has been one of the countries pushing for greater taxation of large tech companies at European level.
These different national initiatives are increasing the pressure on the EU to find a common line.
I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.
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