Group of EU countries reject plan for digital tax

Members of the European Union are rejecting a plan to introduce an EU-wide tax on large companies’ digital revenue ahead of a looming year-end deadline.

A proposal from the EU’s executive commission in March would impose a 3-percent levy on the digital turnover of large firms, according to Reuters. Supporters of the measure accuse many large tech companies, such as Facebook and Google, of dodging taxes by directing their profits to EU nations with lower taxes.

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However, countries where those tech companies have operations fear they will lose their tax revenues and are objecting to the plan.

All 28 EU nations must sign on for it to become law.

Ireland, Sweden, Denmark and Finland have all announced their opposition to the plan, according to Reuters. Germany, the Netherlands and Great Britain asked for more time to review the proposal.

“We are close to the objective but we are going to need a few more weeks of talks before we get there,” a French finance ministry official told Reuters. France has been a leading proponent of the plan.

A group of EU finance ministers will meet on Dec. 4 to reach a final deal, though expectations are low that they will be able to reach an agreement.