Renew Europe calls for the swift introduction of fair taxation of the digital sector
Ahead of the European Council meeting on 25 and 26 March, Renew Europe is working intensely under the leadership of MEP Martin Hlaváček, (ANO 2011, Czechia) to ensure that a fair taxation of the digital sector is introduced at European level, should a global agreement not be reached by the OECD before the end of summer.
The COVID-19 pandemic has largely benefited digital companies while many other businesses, notably SMEs, have suffered. To ensure a level playing field, the European Union must insist on the introduction of an international corporate digital tax system and the modernisation of outdated rules currently in place, dating back to the early 20th century.
Mr Hlaváček co-drafted the initiative report, which was approved with a vast majority in the Committee on Economic and Monetary Affairs on Tuesday afternoon. He says: “We want to ensure our citizens that the digital companies making large business in Europe will pay their fair share of contributions to our public finances, regardless of their physical presence. In absence of an OECD agreement with our external partners by July 2021, the European Parliament will make sure that the Commission presents our own European solution without any delays."