On Friday the Spanish government approved on Friday a draft law that would tax large companies 3% of their digital revenue, bringing an estimated 1.2 billion euros ($1.37 billion) to state coffers each year, cabinet spokeswoman Isabel Celaa said.
Spain, along with Italy, Britain and several other European Union countries, has been readying national digital tax plans while the bloc is still at loggerheads on an EU-wide levy.
It is designed to prevent big companies, such as Amazon, Google, Facebook and Uber, from averting tax by routing their profits to the bloc’s low-tax states.
The expected fiscal revenue is included in Spain’s draft budget for this year, which the minority Socialist government presented on Monday, although the bills still face parliament discussions that could take several months.
The European Commission last March proposed a 3 percent levy on the digital turnover of large online tech firms to address low taxation.
Full Content: Reuters
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