Spain Backs New Tax On Internet Giants In Budget Plan
Rukhshan Mir (@rukhshanmir) Published October 19, 2018 | 11:46 PM
Spain's socialist government approved Friday a new tax on big internet companies as part of its 2019 budget, hoping to raise up to 1.2 billion euros ($1.4 billion) next year.
Madrid, (APP - UrduPoint / Pakistan Point News - 19th Oct, 2018 ) :Spain's socialist government approved Friday a new tax on big internet companies as part of its 2019 budget, hoping to raise up to 1.2 billion Euros ($1.4 billion) next year.
The tax, which still requires parliamentary approval, will "modernise tax rules" for 21st-century businesses, Finance Minister Maria Jesus Montero told reporters following a weekly cabinet meeting.
It calls for a 3.0 percent tax on online advertising, sales of user data and online platforms.
The tax will be levied on companies with annual revenues of over 750 million euros worldwide, and at least 3.0 million in Spain.
It has been dubbed the "Google tax" in Spain because it would affect US internet giants like Google, Facebook and Amazon.
The tax could also counter the "unfair competition" which e-commerce poses to "traditional commerce", the minister said.
The tax will come into effect once the government's draft 2019 budget is approved.
Prime Minister Pedro Sanchez's minority government has the support ot its main ally, far-left party Podemos which helped it draw up the budget, but will needs to convince smaller Basque and Catalan regional parties to approve it.
The European Union also must still approve the government's draft budget.
EU finance ministers have been wrangling over a controversial proposal to slap a European tax on US tech giants amid concerns that they currently do not pay their fair share.
Today's tax rules were designed for when multinationals developed real assets and operations in different nations, making it relatively clear where taxes were due.
But the US tech titans exist almost exclusively in the virtual world, their services piped through apps to smart phones and tablets from designers and data servers oceans away.
Related Topics
Recent Stories
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
Wafaqi Mohtasib inspection team visits Excise and taxation office
AJLAC announces 5th Conference titled ‘People’s Mandate: Safeguarding Civil ..
Pak-US officials engage to enhance trade, investment ties
IBCC to promote educational excellence, expand regional presence
Pakistani 'Blue Helmets' serving UN Peacekeeping Mission in DR Congo set to leav ..
Putin says plans to visit China in May
More Stories From World
-
Bagnaia and Spanish rivals chase victory at Jerez
1 hour ago -
Russian, Ukrainian strikes kill at least 10 in frontline regions
1 hour ago -
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
2 hours ago -
Tourism must change, mayor says as Venice launches entry fee
2 hours ago -
Pakistani 'Blue Helmets' serving UN Peacekeeping Mission in DR Congo set to leave after 20 years of ..
2 hours ago -
Putin says plans to visit China in May
2 hours ago
-
US reinstates open internet rules rescinded under Trump
2 hours ago -
Honda announces US$11 bn EV battery and vehicle plant in Canada
3 hours ago -
Portugal marks 50 years of democracy with far right on the rise
3 hours ago -
Oman, UAE deluge 'most likely' linked to climate change: scientists
3 hours ago -
BHP launches $38.8 billion takeover bid for rival Anglo American
4 hours ago -
Saudi oil giant Aramco agrees major FIFA sponsorship deal
4 hours ago