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Paolo Gentiloni Said That Technology Giants Should Pay More Taxes

Paolo Gentiloni, the European Union's commissioner in charge of taxation and economy, said that technology giants should pay more taxes.

Paolo Gentiloni Said That Technology Giants Should Pay More Taxes
Yazar: Tom Roberts

Yayınlanma: 6 Eylül 2020 22:08

Güncellenme: 20 Kasım 2024 05:32

Paolo Gentiloni Said That Technology Giants Should Pay More Taxes

According to the news on CNBC, Paolo Gentiloni, the European Union's commissioner in charge of taxation and economy, said that technology giants, who are the real winners of the corona virus epidemic period, should pay more taxes. Gentiloni's words came at a time when there was a debate between the EU and the US over the taxation of Apple, Alphabet (Google) and Amazon. The commissioner said that these differences of opinion with the United States are difficult to overcome. Gentiloni said: “It is no longer possible to accept that the tech giants, the winners of the crisis, have paid fair taxes in Europe. Economically, tech companies are the real winners of this process. We all experience this in our own lives ”.

9.5 Percent To Digital Companies, 23.2 Percent To Traditional

In 2018, the European Commission stated that the tax system should be updated for the digital age. He advocated the introduction of a 3 percent 'digital tax' for this. However, the US objected, saying this would be unfair on the grounds that it would disproportionately affect their own companies. According to a study by the European Commission at the time, digital companies paid 9.5 percent tax, while for traditional businesses this rate was 23.2 percent.

" We Are With The Global Solution But… "

EU countries, which announce support packages to reduce the economic effects of the epidemic, need additional resources to meet this. The number one way to do this is to introduce new taxes. In this context, the EU is expected to implement the digital tax in 2021, if there is no result from the negotiations conducted at OECD level. European Commissioner Paolo Gentiloni said: “If negotiations fail, we will determine our own rate as a commission. We are in the election year in the USA. This causes the talks to proceed only on a technical level. Still, as the EU, we insist that a global solution should be found on this issue. " The US withdrew from the negotiations in June. Therefore, it does not seem possible to reach an agreement in 2020.
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