EU scraps common digital taxation plans
EU governments yesterday scrapped a plan to introduce an EU-wide digital tax as some states opposed it, the Romanian presidency of the EU said.
The move is likely to be welcomed by digital giants such as Alphabet's Google and Facebook which would have fallen under the scope of the envisaged 3pc levy.
However, they still face similar taxes that EU states, such as France, Italy, Britain and Spain, are introducing at national level.
In a public session of a meeting of EU finance ministers, Romania's Eugen Teodorovici said there was no agreement on the tax despite months of talks, because Ireland and the Nordic countries consistently opposed the measure.
Ministers would now focus on trying to reach a common position for an overhaul of digital taxation at a global level by 2020, he said.
Global reforms on tax have proven very hard to reach because of widely differing interests among top states.
The OECD is working on a global digital taxation deal to narrow loopholes that allow large multinational firms to greatly cut their tax bills.