Tax aimed at likes of Amazon and Google but OBR says it might raise just £30m from each
The government has announced a special digital services tax on US technology firms – including Google, Facebook and Amazon – to make sure “these global giants with profitable businesses in the UK pay their fair share”.
Philip Hammond, the chancellor, said the UK could no longer wait for “painfully slow” discussions on an international agreement on tackling tech firms’ tax avoidance. He said the UK would go it alone and introduce the tax on online firms that make more than £500m a year globally. Hammond said he expected the “narrowly targeted tax”, which will come into force in April 2020, to raise more than £400m a year for the exchequer.