European Parliament approves new framework for digital taxation: consumers will pay the bill

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Bill Wirtz

Policy Analyst

Consumer Choice Center

European Parliament approves new framework for digital taxation: consumers will pay the bill

Brussels, BE – In an attempt to create a “clear and fair” corporate tax regime for the European Union, the European Parliament approved a resolution for a tax plan which will identify the “digital presence” of companies in individual member states.

Digital companies will be judged on their digital activities and even the value of the personal information they hold from users, in order to determine their corporate taxation.

The resolution by the European Parliament is in line with an announcement by the European Commission to reveal a plan for so-called “digital taxation” next week.

Bill Wirtz, Policy Analyst for the Consumer Choice Center (CCC) said this push by the European Union raises substantial concerns for consumers.

“Reducing tax competition in the EU will inevitably increase the tax burden on digital companies over time. We can’t close our eyes to the fact that it is consumers who will pick up the tab, through rising prices,” said Wirtz.

“We don’t know enough about the scale in which the “digital presence” framework would operate. Depending on the size, it could disincentive small and medium-sized companies in the digital sector to operate internationally in high-tax countries.

“The future of Europe’s market economy undeniably lies in the digital sector. The idea of attempting to increasingly tax online businesses is not a promising objective, neither for the states nor their consumers,” said Wirtz.

***CCC Policy Analyst Bill Wirtz is available to speak with accredited media on consumer regulations and consumer choice issues. Please send media inquiries HERE.***

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

 

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