US warns of possible counter-measures against Czech digital tax

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PRAGUE: The Czech Republic could face U.S. counter-measures if it introduces a planned 7per cent digital tax aimed at global internet giants, the U.S.

Several European countries are considering such a tax to raise more money from the local businesses of companies such as Google and Facebook, leading the United States to threaten retaliation in support of its tech industry.Britain has said it will press ahead with its proposed digital tax, while France has put off its plans to wait for broader negotiations within the Organisation for Economic Cooperation and Development .

"The U.S. government has been clear on the issue of digital services taxes, or DSTs," the U.S. embassy said in a statement, referring to past comments by the ambassador as well as U.S. Treasury Secretary Steven Mnuchin in Davos this week. The planned Czech tax covers revenue from targeted advertising, digital market places, and user data sales.

 

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