PES welcomes Commission’s legislative proposal to tax digital companies


Pierre Moscovici

Commissioner Pierre Moscovici presents the GAFA legislative package to the press on 21 March, 2018

The Party of European Socialists warmly welcomes the European Commission's proposal to tax digital companies according to the profits generated in each country. This is a long-awaited improvement which will allow to fight tax avoidance from digital giants.

PES president Sergei Stanishev said:

"It’s time that everyone pays their fair share of tax and that billions in taxes are not diverted to the countries with the lowest rates, whether within the EU or in third countries. Taxes must be paid where the profit is generated, the rules that apply to the physical economy must also apply to the digital economy.

"I therefore very much welcome the work done by Commissioner Pierre Moscovici to put forward this proposal."

The PES would like to see implemented an ambitious version of today’s proposal, with a Europe-wide tax rate on digital companies on the upper end of the suggested 1 to 5% range.

Stanishev said:

"There can't be tax competition within an economic union. The current situation is unsustainable both economically and politically. We will continue to fight for a Common Corporate Consolidated Tax Base, in addition to this package, so we can achieve tax justice in the EU."