Italy to introduce tax on digital companies from 2020

ROME, Oct 16 (Reuters) - Italy approved a new tax on digital companies as part of its 2020 draft budget on Wednesday, and plans to introduce the new measure from next year.

The levy will oblige web-based giants to pay a 3% levy on internet transactions, according to the text of the draft budget.

The scheme is expected to yield around 600 million euros each year, sources told Reuters on Monday, as Italy scrambles to find alternative revenues that will allow it to avoid a scheduled increase in sales tax.

Italy and fellow European Union members have long complained about the way Facebook, Google and other web giants collect huge profits in their countries but pay taxes of a few million euros per year at most. (Reporting by Giuseppe Fonte, writing by Giulia Segreti, editing by Valentina Za)