Washington Threatens British Companies if they Impose Fees on Google and Facebook

The United States has threatened to raise taxes on car companies if British Prime Minister Boris Johnson goes ahead with plans to impose fees on technology giants such as Google and Facebook, according to the British newspaper “The Independent”.

Stephen Mnuchin, the US Treasury secretary, said the United States considers the UK’s proposed digital service tax “discriminatory” and warned that Washington could impose retaliatory taxes on the auto industry.

 

But Chancellor Sajid Javed said the tax of 2 percent would be presented in April as a temporary measure until an international agreement was reached on how to deal with Internet giants.

 

Speaking at the World Economic Forum in Davos, Manuchin said that Donald Trump would pressure the British prime minister over the proposed tax and claimed that what they had in common was an “excellent relationship.”

 

The United States and France struck a truce over Emmanuel Macron’s plans to implement a similar measure after Washington responded by threatening to impose tariffs on French cheese and wine.

 

“We have been very clear in our belief that the digital tax is inherently discriminatory, there is an OECD process in which we participate.” He added: “International tax issues are very complex, they take a long time to consider and if people want to impose arbitrary taxes on our digital companies , Then we will consider arbitrary taxing of car companies. ”

 

The UK has been urged to withhold the tax by the Organization for Economic Co-operation and Development (OECD), which has called for time to be allowed to allow the international approach to succeed.

 

Many governments are considering taxing to ensure that the world’s largest digital companies pay the tax in the places where it is used, rather than just paying taxes at the location of their headquarters.