Home News French Finance Minister Proposed 3% Tax on Internet Companies

French Finance Minister Proposed 3% Tax on Internet Companies

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It is with no doubt that the age of the internet is happening in the world today. Various companies rely on the use of the web to function and to render their services to the public. These companies are called internet companies like Google, Amazon, and social media sites and applications like Facebook. People would use these companies’ products to make their life easier even at a high cost. In turn, these companies gain a lot of profit from their consumers or customers.

This concept urges French Finance Minister Bruno Le Maire to propose a 3% tax on large internet companies in France.

The increase in charge, as Le Maire suggested, is to give a higher value to data. The extensive utilization of data by internet companies made Le Maire recommend a taxation system.

Fiscal justice is another matter that Le Maire wanted to discuss. Giant companies pay smaller tax compared to smaller companies in Europe. The little charges made it possible for these internet companies to gain large profit.

The tax increase will only apply to large internet companies with a French revenue of €25 million or worldwide income of €750 million.

“GAFA” companies, which includes Google, Amazon, Facebook, and Apple, would be subjected to the tax increase. Other 30 foreign companies will also be involved as well as French firms with international origin.

Companies that use web sites to sell their original products will not be a part of the tax increase. However, companies similar to Amazon, which acts as a middleman between producers and consumer, will be a part of the tax rise.

Le Maire will pass a draft to the cabinet for reviews before presenting it to the parliament.

Before Le Maire, France already proposed a tax increase for digital revenue firms since they have large commissions. However, oppositions are present in the proposal before, which halted its progress.

Alexandre Bompard, CEO of Carrefour, supported the tax increase. He said that the injustice among the tax between companies is unfair and needs changes.

Prediction of the gained money from the proposal shows promising results. If Le Maire’s suggestion were accepted, a total of €500 million per year would be collected.

As Le Maire and Bompard reinstated, now is the time to disrupt the imbalance between small-scale companies and larger internet companies.  The increase in tax will not only favors the country’s revenue but will bring justice to the corporate world.