Overview

• The European Commission’s draft replaces a standalone digital tax with a broader turnover charge targeting firms with more than €50 million in annual EU revenue.
• A tiered structure ensures that companies with the highest turnovers make larger contributions, applying to businesses irrespective of their headquarters.
• Inclusion in the 2028–2034 Multiannual Financial Framework hinges on securing unanimous backing from all 27 EU member states.
• Officials aim to tap fresh revenue streams to address post-pandemic debts and underwrite future budgetary needs.
• US trade pressures and President Trump’s tariff threats over tech regulation have shaped negotiations on the levy.