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ROME : Italy must be cautious about taxing web companies more heavily as it risks retaliation from the United States, Deputy Economy Minister Maurizio Leo said on Tuesday.
A tax on digital companies including U.S. tech giants has been effective since 2020 and is worth some 300 million euros ($329 million) per year.
Under the scheme, companies such as Meta Platforms Inc, Google and Amazon are due to pay a 3 per cent levy on revenues stemming from internet transactions.
“We cannot go beyond that,” Leo told a parliamentary hearing.
“Other countries across the Atlantic are urging us to be cautious and if we raise taxes there could be retaliation in terms of higher duties,” Leo said, speaking about the United States.
At the end of 2019, just few weeks before Italy’s tax was approved by parliament, Washington said the levy unfairly targeted U.S. firms.
Leo told lawmakers the issue should be addressed as part of talks to implement a global minimum tax aimed at stopping big business from hiding profits in tax havens.($1 = 0.9122 euros)
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