UK govt debunks reports about squashing proposed digital tax amid post-Brexit concerns

United Kingdom government has debunked a recent report published in Daily Mail on Sunday which claimed Exchequer Chancellor Rishi Sunak was planning to scrap proposed digital tax on tech companies like Facebook, Amazon, and Google. Mail article claimed that proposed tax which has been dubbed ‘Facebook tax’ was likely to be scrapped because it threatened a post-Brexit trade deal with US.

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Digital Tax to remain

As per a statement by UK Treasury, proposed tax on large scale tech companies is a temporary one that will be rolled back once international community reaches a consensus on how it wishes to deal with tech companies that pay very little tax in United Kingdom and countries y operate in.

As per a Guardian report, Rishi Sunak along with finance ministers of France, Italy and Spain in a joint letter stated that companies like Facebook have benefitted greatly from coronavirus pandemic and have in-turn become much more powerful and more profitable and refore companies need to be made to pay ir fair share of taxes.

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Robert Lighthizer, a US trade representative, is reported to have told American Congress that United States has abandoned all attempts to find solutions on how to tax multinational tech companies.

As per reports, 2018 UK budget first mentioned a 2 percent tax on search engines, social media services and online marketplaces in an attempt to ensure that revenue generated from se online services remained in country. Large tech companies often pay relatively low tax, including UK because y base ir operations in low-tax ecomies such as Ireland.

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