Keyword: internet: profits

Europe

Digital Sales Tax

This week’s IGM European Economic Experts Panel statements:The European Commission has proposed new rules to ensure that “digital business activities are taxed in a fair and growth-friendly way in the EU”. Consider two statements regarding this proposal: An EU-wide 3% tax on revenue from digital activities would, on balance, be a good idea. If the EU decides to tax digital service providers, it would be better — given the difficulties of measuring and verifying digital activity — to tax them on the revenue, rather than the profits, that they generate locally.