USTR slams India, Italy, Turkey on digital taxes but holds off on tariffs

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Digital services taxation adopted by India, Italy and Turkey discriminate against US businesses and therefore are inconsistent with international tax rules, the US Trade Representative’s office has said, paving the way for possible retaliatory tariffs.

USTR, releasing the findings of its “Section 301″ investigations to the digital taxes, said it was not taking particular actions at this moment, but”will continue to evaluate all available options.”

The probes are just one of several still open USTR Section 301 investigations which could cause tariffs before President Donald Trump leaves office or early in the government of President-elect Joe Biden. One of these is a more advanced probe to France’s digital services tax.

USTR had put a Jan. 6 deadline for executing 25 percent tariffs on French cosmetics, handbags and other imports valued at around $1.3 billion yearly in retaliation against the French taxes.

Nevertheless, it was uncertain late on Wednesday whether collections of those duties would begin as scheduled.

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USTR has reasoned the electronic taxes imposed by France, India, Italy and Turkey discriminate against big U.S. tech firms, such as Google, Facebook, Apple and Amazon.com

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by David Lawder and Andrea Shalal. Editing by Leslie Adler and Lincoln Feast.

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