US to probe France's plans to implement Digital Service Tax

The United States on Wednesday launched an investigation into the French government's decision to implement Digital Service Tax (DST) which will "unfairly target" American companies.

"On July 10, 2019, the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 of the Digital Services Tax (DST) of the Government of France," read an official statement.

The Bill. which will be presented in the French Senate on Thursday, aims at imposing a 3 per cent tax on total annual revenue generated by some big companies which provide digital services to French users.

In March, French Finance Minister Bruno Le Maire had said that his country is planning to impose a tax on the annual revenues of technology companies that make at least 750 million euros annually and provide services to users in the country, reported The Hill.

The tax would affect multiple US tech giants, including Apple, Google and Amazon.

"The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," US Trade Representative Robert Lighthizer said.

"The President has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce," he added.