France Taxes 3% Google and Facebook: US Says It’ll Investigate
“I want to tell our American friends that this should be an incentive for them to accelerate even more our work to find an agreement on the international taxation of digital services,” said French Finance Minister Bruno Le Maire as reported by BBC.
The 3% tax will be levied on sales generated in France by multinational firms like Google and Facebook.
The French government has argued that such firms headquartered outside the country pay little or no tax.
The US administration has ordered an inquiry into the move – which could result in retaliatory tariffs.
The Trump administration denounced the move a day before the vote.
On Wednesday trade representative Robert Lighthizer said an investigation would “determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce”.