US pressures Italy to end web tax on tech giants
Diplomatic tensions over the expansion of web tax policy.
The United States has renewed pressure on Italy to scrap its domestic web tax, sources say, warning that ignoring the request could lead to retaliatory tariffs. Introduced in 2019, the Italian tax imposes a 3% levy on digital transactions for tech giants like Meta, Google, and Amazon, yielding under €500 million annually. While Washington views the tax as unfairly targeting US firms, Italy has held firm, awaiting clarity on the stance of the incoming US administration.
Italian Prime Minister Giorgia Meloni’s 2025 budget proposal includes expanding the tax’s reach by removing revenue minimums, which could bring in an additional €51.6 million. Italy’s Treasury hopes this adjustment, which would require more companies to pay, might address US concerns about the tax’s perceived bias. However, some Italian lawmakers argue for keeping the focus on large US tech companies, with proposed amendments aimed at raising the tax rate but maintaining protections for small and medium enterprises.
Forza Italia Senator Maurizio Gasparri supports stronger regulations on ‘web giants’ but acknowledges the risk of a backlash from the US if the changes move forward.