US attacks UK plan for digital services tax on tech giants
The US has hit back against a UK plan to impose a new tax on sales by technology giants.
US political leaders and business groups say the proposal would violate tax agreements by targeting US firms.
They warned the tax could spark US retaliation and hurt prospects for a US-UK trade deal.
In a statement on Wednesday, Representative Kevin Brady, a Republican from Texas, called the measure “troubling”.
“If the United Kingdom or other countries proceed, that will prompt a review of our US tax and regulatory approach to determine what actions are appropriate to ensure a level playing field in global markets,” said Mr Brady, who helped shepherd US tax cuts through Congress last year.
His statement echoed comments last week by US Treasury Secretary Steven Mnuchin, who voiced “strong concern” about different countries’ efforts to develop digital sales tax.
A slew of business groups – including the US Chamber of Commerce and the US Council for International Business – have also come out against the UK plan.
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If enacted, the tax measure could “complicate the United Kingdom’s push for deeper US-UK trade relations”, said Rufus Yerxa, president of the National Foreign Trade Council.
Click here to read more (Source: BBC News)