France begins debating digital tax\, defying US ire

France begins debating digital tax, defying US ire

AFP  |  Paris 

French lawmakers on Monday began debating a new tax on digital giants such as and that has angered the United States, with boasting that was proud to be in the vanguard of such a move.

The legislation, dubbed "Gafa" after Google, Amazon, and Apple, comes amid rising public outrage at the minimal tax paid by some of the world's richest firms.

"is honoured to be leading on such subjects," Le told parliament, saying that the draft constituted a "step... towards a fairer and more efficient taxation for the 21st century." The debates in the are due to last until Wednesday.

Responding to the criticism from the United States, Le said was "determined" to press on with the legislation and would be "sovereign" on fiscal issues.

He said it was "unacceptable" that digital giants could make "considerable profits" from user data so that the "profits are made in France but the taxes are imposed abroad".

Last month, France unveiled the draft legislation to set a three percent tax on digital advertising, the sale of personal data and other revenue for any company that earns more than 750 million euros (USD 840 million) worldwide each year.

France is seeking to agree the legislation on a national level after a European Union-wide effort was scuttled by low-tax countries such as Ireland, which have wooed big firms.

But Le Maire insisted that a "good solution in the long term will be a multilateral solution," vowing not to let up in efforts for an agreement within the (OECD).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 08 2019. 23:20 IST