The UK plans to drop a tax on tech companies

Published by Yamna Ali Monday, August 24, 2020

A mail from Sunday newspaper reported that the finance minister of the UK, Rishi Sunak, decides to drop tax on various technology companies including, Facebook and Google. This is mainly because these big techs are not helping enough in raising money for the trade deal made with the USA.

In April, negotiations were being made globally on how to charge tax from tech giants, most of which included US-based companies. As a solution to it, Britain released a digital service tax to enhance the progress of negotiations.

The tax from these tech companies is projected to raise around 500 million pounds for a year which is equal to $654 million. Since the Covid-19 pandemic has brought so many crises along for almost every country in the world, the UK also faces economical, health, environmental and trading problems. France and several other countries are also planning to roll out orders for similar taxes.

However, as per the reports of Sunday mail, one of the finance ministry representatives said that this would be a temporary tax and will be ended once the country reaches its goal to work with its international partners once again.