Italy considers strengthening digital tax despite US concerns
Digital services tax might be increased in Italy in its 2025 budget, despite concerns over potential U.S. retaliation. The tax, which targets major tech companies like Meta and Amazon, could be expanded to raise more revenue.
Italy is exploring ways to strengthen its digital services tax as part of its 2025 budget, according to officials. The tax, which currently generates around €400 million annually, targets large tech firms like Meta, Google, and Amazon. Proposed changes include expanding the number of companies affected or increasing the rate for those already taxed.
The potential move comes amid concerns of US retaliation, as Washington has previously threatened tariffs against European countries that implement unilateral digital taxes. Despite an earlier agreement that froze these threats, the US has not ruled out future action. Italy’s decision is driven by the need to increase fiscal revenue as the government prepares to widen its budget deficit and introduce tax cuts in 2025.
US Commerce Secretary Gina Raimondo is set to meet Italian Prime Minister Giorgia Meloni this week, with digital taxation expected to be a key discussion point. Meanwhile, Italy continues to push for global tax reforms, which have stalled due to international disagreements.
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