30 Oct 2018_campuscad
Philip Hammond, UK Finance minister proposed 2% digital service tax on the tech giants who earns more than £500 million in global revenue by 2020.
Hammond argued that tech giants from US who includes social media, search engines, E-commerce market places must pay fair digital service tax to the Britain.
It is not just a service tax but tech companies are using UK citizen data to earn large profits.
“It’s clearly not sustainable, or fair, that digital platform businesses can generate substantial value in the UK without paying tax here in respect of that business,” Hammond said in annual budget speech.
UK Finance minister is under pressure to collect the funds which eventually helps to put money in public services.
Facebook, Amazon and Google fall into the proposed digital service tax criteria by Hammond.
Facebook paid just £5.1 million corporation tax in 2016 with revenue surged from £200 million to £ 850 million.
Google paid £36.4 million tax in 2017 and it is also investing to develop new office which can produce 7000 new jobs.
Brexit is coming in next year as it will impact the Britain’s economy and jobs as it is the most favorite destination in the EU for tech companies.
Britain also open to follow the same regulations imposed by EU on tech giants if happened early.
- Facebook hires former deputy prime minister of UK Nick Clegg
- UK competition commission to launch investigation into Facebook and Google digital ad dominance
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