The British Minister of Finance wants to remove the tax that digital giants like Google and Facebook have to pay.
According to the Mail on Sunday newspaper, Minister Rishi Sunak wants to remove the so-called digital tax or GAFA tax that it only introduced in April. He says that the tax does not yield that much.
However, it is estimated that this would bring the country up to 500 million pounds per year.
What may be more significant is that the UK currently wants to conclude a bilateral trade agreement with the US, a tax on a few large American companies could throw a spanner in the works.
According to Mail on Sunday, Sunak says it has always been intended to be a temporary tax, which will also be discontinued once there is a global solution.
But we are not there yet. For years, at both European and global levels, there has been no progress in a tax system that taxes large digital players more reasonably.
Today companies like Google, Amazon, Facebook, Apple and Microsoft sometimes pay a lot less tax than they should.
Technically nothing illegal is done, but for example profits in certain countries are channelled to countries with a more favourable tax regime, or profit in certain moose is transferred as (low-taxed) royalties to the parent company.
