Digital tax: EU Commission apparently wants to take back

The EU Commission has apparently dropped its plan to collect a tax on large digital companies. The Brussels government institution has deleted the option of such a submission from its list of proposed taxes to achieve income as part of the next seven -year budget framework, reports politico, referring to a document that has been circulating since Friday.

With the potential withdrawal, the Commission obviously wanted to set an example in the final phase of negotiations on a trade agreement to avoid high tariffs between the EU and the USA. US President Donald Trump and US technologies such as Amazon, Apple, Google or Meta would achieve a victory. Trump threatened Canada with tariffs as a retaliation for the digital tax that was considered there, recently but recently tilted. On Thursday, he announced flat -rate taxes of 35 percent against the neighboring country. On Saturday he also sent a letter to the EU, in which he announced tariffs of 30 percent to products that will be delivered to the United States from August 1st. The EU had hoped for a rudimentary agreement with 10 percent.

There are high-ranking EU officials just a few days before the household plan was presented According to politico in last minute talksto decide which taxes are included in the commission proposal for the multi -year budget from 2028. The draft is to be officially published on Wednesday. According to the report, the current status of the document contains a list of possible taxes. However, it does not quantify how much money each of these levies would probably bring in. The paper could still be revised before its publication – especially in the light of Trump’s customs decision.

German debate about “Platform-Soli”

The decision against a digital levy would be a U-turn of the Brussels Executive, which only brought Tech giants into play as a possibility of repaying tech giants in May. The idea found itself in an early service to the next household framework that the Commission discussed. If the initiative is actually deleted, this should also end the local debate about a digital tax alias “platform soli”. So far, this has always referred to a common European approach.

According to the document on Friday, the EU plans to propose three other new taxes that aim at electronic waste, tobacco products and large companies in the EU with sales of over 50 million euros. This is supposed to meet 25 to 30 billion euros annually. These are mainly intended to repay the debts from the Corona aid fund. Italy, Greece and Romania reject new taxes on e-cigarettes and vapes. A CO2 limit tax is still under discussion, which provides for the participation of the member states in the income from the emission trade system (ETS). The national governments have to accept the draft budget unanimously after its publication.