Donald Trump announce US to investigate Digital Tax on tech companies including India

US President Donald Trump’s administration announce the Investigation on its Digital Service Tax on Tech Firms for Britain, European, India and other countries are aimed squarely at American Companies.

The US Trade representation is now looking into taxes in Britain and the European Union, Turkey, Indonesia, India, Brazil etc. President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies.

The effects to collect tax revenues from online sales and advertising saying that they single our US Tech giants like Google, Apple, Facebook , Amazon and Netflix.

A number of US allies such as EU and the UK are mentioned in its lists.. This USTR action is meant to address the issue of digital taxation and should not be treated as move of aggression against India’ said the government spokesperson.

From April 1, India imposed a new 2 percent tax on foreign billing or transactions where companies take payment aboard for digital services provided in India. This will hurt Amazon Pay for e-commerce transactions.

The USTR is also said on advertising revenue earned by companies overseer’s if those ads eventually target customers in India as Google ads sense being used by customers in India.

source reuters