Overview

• The Commission removed its planned digital services tax from the 2028–34 budget draft after President Trump threatened retaliatory tariffs
• A new EU-wide turnover levy will target companies with annual revenues above €50 million using a bracketed contribution system
• The proposal introduces fees on non-recycled electronic waste and duties on tobacco products to diversify the bloc’s revenue streams
• Officials aim to secure €25–30 billion per year to repay joint EU debt incurred during the post-Covid recovery
• The measures must be formalized by the Commission and then win unanimous approval from all 27 member states through up to two years of negotiations