EU urged to push digital tax despite US opposition
The EU faces growing pressure to introduce a digital tax as tensions with the US rise over how global tech companies should be regulated and taxed.
Calls for an EU-wide digital services tax are growing, as Pasquale Tridico, chair of the European Parliament’s subcommittee on tax matters, urged Brussels to act despite strong opposition from the US. He argued that such a measure would make Europe’s tax system fairer in a market dominated by foreign tech firms.
Tensions have increased as Washington threatens tariffs on countries introducing digital taxes targeting major platforms. Existing national levies in countries like France contrast with the absence of a unified EU approach due to member state control over taxation.
The proposal comes amid wider strain in transatlantic relations, with disputes over trade, regulation and influence on EU policymaking. US criticism has also focused on European rules such as the Digital Services Act and the Digital Markets Act.
Supporters argue that a digital tax would apply equally to global companies, not only US firms, while addressing imbalances between sectors. Digital businesses can generate large profits without the same physical costs faced by traditional industries.
Further proposals include new approaches to taxing wealth, reflecting how digitalisation blurs the line between income and capital. Advocates say such reforms are needed to adapt taxation to the modern economy.
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