France unveils tax for internet giants
France on Wednesday introduced a bill to tax internet and technology giants such as Google and Facebook on their digital sales, putting it among a vanguard of countries seeking to force the companies to pay more in the markets where they operate.
The French bill was discussed at cabinet level and will be submitted to parliament in early April.
Speaking to reporters, Economy Minister Bruno Le Maire described the levy as "a first step" in setting up "a 21st century taxation system".
"It's a question of justice for our fellow citizens" and for "our businesses", he said, adding "no one can accept that big digital firms pay 14 percent less tax than our small and medium firms".
"If we want to be able to continue to finance our public services, our day nurseries, our hospitals, our schools, we must tax value where it is created," he added.
The tax, to be applied retroactively from January 1, sets a three percent levy on digital advertising, websites and the resale of private data by internet giants.
It should bring in 400 million euros ($452 million) to the public purse this year, and 650 million by 2022, according to Le Maire -- an amount the Le Monde newspaper called "a small sum" but "highly symbolic."
Left-wing politicians denounced the measure as too feeble.
"Bruno Le Maire is taking on these giants with a water pistol," Ian Brossat, a leader of the Communist party, told Liberation newspaper.
Britain, Spain, and Austria have said they too intend to unilaterally tax the giants, while Japan, Singapore and India are also working on such schemes.
Comments