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Germany Advances 10% Digital Services Tax on Tech Giants

Berlin has insisted on an internationally coordinated approach to prevent consumer price rises.

A keyboard is placed in front of a displayed Facebook logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
German official Philip Amthor said 'large digital corporations in particular are cleverly engaging in tax avoidance'
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Overview

  • Culture Minister Wolfram Weimer is drafting legislation to impose a 10% levy on advertising revenues of major platforms like Alphabet and Meta based on Austria’s model.
  • A digital ministry spokesperson cautioned the proposal awaits full government approval and must comply with EU law to shield consumers from extra charges.
  • Chancellor Friedrich Merz is expected to raise the levy during talks with U.S. President Donald Trump in Washington despite American objections.
  • Industry body Bitkom warned that passing the levy onto customers could impede the digitalisation of public services and corporate transformation.
  • Germany would join Britain, France and other EU states that have enacted similar taxes, posing fresh transatlantic trade tensions.