You are here: Home » International » News » Politics
Business Standard

US slams India, Italy on digital taxes, could impose retaliatory tariffs

Digital services taxes adopted by India, Italy and Turkey discriminate against US companies and are inconsistent with international tax principles, the US Trade Representative's office has said

Topics
digital tax | US India relations  | Italy

Reuters  |  WASHINGTON 

US Flag
The flag of United States of America

By David Lawder

WASHINGTON (Reuters) -Digital services taxes adopted by India, and discriminate against U.S. companies and are inconsistent with tax principles, the U.S. Trade Representative's office said on Wednesday, paving the way for potential retaliatory tariffs.

USTR, releasing the findings of its "Section 301" investigations into the digital taxes, said it was not taking specific actions at this time, but "will continue to evaluate all available options."

The probes are among several still open USTR Section 301 investigations that could lead to tariffs before President Donald Trump leaves office or early in the administration of President-elect Joe Biden. Among these is a more advanced probe into France's digital services tax.

USTR had set a Jan. 6 deadline for implementing 25% tariffs on French cosmetics, handbags and other imports valued at around $1.3 billion annually in retaliation against the French digital taxes.

But it was unclear late on Wednesday whether collections of those duties would begin as scheduled. Spokesmen for USTR and Customs and Border Protection, the agency responsible for tariff collections, did not respond to multiple requests for comment.

USTR has concluded the digital taxes imposed by France, India, and discriminate against big U.S. tech firms, such as Google, Facebook, Apple and Amazon.com

In the latest report, it also said the Indian, Italian and Turkish taxes were "unreasonable" because they are "inconsistent with principles of taxation, including due to its application to revenue rather than income, extraterritorial application, and failure to provide tax certainty."

 

(Reporting by David Lawder and Andrea Shalal; Editing by Leslie Adler and Lincoln Feast.)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 07 2021. 06:46 IST
RECOMMENDED FOR YOU
.