LONDON, Oct 29 (Reuters) - Britain said it would tax the revenues of online platforms like Google, Facebook and Amazon to create a fairer tax system that had not kept pace with changing digital business models.
“It’s clearly not sustainable, or fair, that digital platform businesses can generate substantial value in the UK without paying tax here in respect of that business,” finance minister Philip Hammond said in his annual budget on Monday.
The tax will be designed to ensure established tech giants, rather than start-ups, shoulder the burden, Hammond said. The Treasury said profitable companies would be taxed 2 percent on the money they make from UK users from April 2020.
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.