European Union finance ministers are set to ditch a plan to introduce an EU-wide...
BRUSSELS - European Union finance ministers are set to ditch a plan to introduce an EU-wide digital tax next week but agree to work on a global reform of the taxation of internet companies, an EU document shows.
“A number of delegations continue to have fundamental objections,” the Romanian presidency of the EU wrote in a document prepared ahead of the EU finance ministers meeting on March 12.The document showed that EU ministers week are expected to agree instead to keep working on a global tax reform prepared by the Organisation for Economic Co-operation and Development , a club of mostly wealthy nations.
Under the plan originally rolled out by the EU Commission last year, large companies would have been required to pay a levy on data sales, online marketplaces and targeted advertising. But several EU states blocked it, fearing a loss of revenues and retaliation from the United States and other countries affected.
Tax reforms on the EU level must be backed by all 28 member states to be approved, but Ireland and Scandinavian countries have staunchly opposed the overhaul. Other countries have also been skeptical.
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