On Wednesday, the 22nd of January 2020, a battle appears to be brewing over the horizon on how Europe will tax global heavy-weight tech conglomerates over the coming days as US Treasury’s Mnuchin and Britain’s Finance Minister Sajid Javid traded fresh threats over tech taxation at the stage of World Economic Forum in Davos, Switzerland.
As leaders of the major global economies met in Davos on Wednesday (January 22nd), UK’s Javid was quoted saying the British Government of PM Boris Johnson would step up pressure to enforce a digital service tax as early as by April this year, while US Treasury Mnuchin, who had been at a spitting distance away from the UK Finance Minister, said as a repercussion that any digital taxation on global tech giants, a majority of which were based in the United States, would be met with steep “arbitrary” retaliatory measures.
Meanwhile, adding the US would have to think twice on tariffs over the EU goods if Europe considered a move to put taxes on US tech giants, Mnuchin said to a panel at the World Economic Forum on Wednesday (January 22nd), “International tax issues are very complicated and take a long time to look at.
If people want to just arbitrarily put taxes on our digital companies, we’ll consider arbitrarily putting taxes on car companies. ”