US, France reach agreement
Live Correspondent: French President Emmanuel Macron said Monday G7 members had reached an agreement on the taxation of tech giants, a long-standing subject of friction between France and the US which has threatened to retaliate with tariffs on French wines.
Speaking alongside US President Donald Trump at a G7 summit in southwest France, Macron admitted that there had been “a lot of nervousness” about France’s new tax on tech behemoths such as Google and Facebook.
But negotiations between France and the United States had produced “what I think is a very good deal,” he said. Macron explained that France would scrap its own digital tax once a new international levy being discussed among 134 OECD countries is in place. France hopes it will be ready in 2020.
The French parliament passed its new levy in July amid frustration at the slow pace of negotiations on a new global accord to ensure tech multinationals pay a larger share of taxes on their operations.
Under the agreement struck in Biarritz, French tax authorities will look at how much companies paid in French “GAFA” taxes and how much they would have paid under the yet-to-be-decided international formula, French Economy Minister Bruno Le Maire told AFP.
“Frankly, we must do something to tax fairly and properly the online businesses that have such colossal sales in our country,” British Prime Minister Boris Johnson said ahead of talks with Trump in Biarritz on Saturday.
Dhaka 27 August (campuslive24.com)//MIH