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The UK talks to the United States about the reduction or abolition of the entire British Digital Services Tax before April 2, as it seeks to avoid the worst of the global tariffs of US President Donald Trump.
US Ambassador Lord Peter Mandelson told the Financial Times to “discuss the tax itself” and signaled that they were on the table on the table except that they were completely abolished.
People who took care of the discussions said that the options examined by the British Treasury depended on whether London received a clear offer from Washington to relieve Britain with criminal tariffs.
Trump vowed to impose “reciprocal” tariffs on US trade partners from April 2, aiming not only countries that have tariffs on US imports, but also other taxes affecting US companies.
Britain digital services tax, which arrives at American technological giants, including alphabet, Meta and Amazon, is expected to raise some £ 800 million in 2024-25, at a time when the treasury is trying to increase public finances.
Liberal Democrat leader Sir Ed Davey warned the Government of the UK not to advocate US requests by reducing digital services tax, claiming that such a move would be “transition to Trump’s mistreatment.”
Technology secretary Peter Kyle told FT that the discussions are currently “very early stage”, but that people “will start to see the fruits of these discussions very quickly.”
“Digital services tax is on the table, but there are no conclusions yet,” said one clerk who informed the negotiations. “We need to make sure everyone is happy.”
Jonathan Reynolds, a British Business and Trade Minister, gave talks in Washington this week to investigate a possible agreement. His allies said they wanted to move a pace to ensure an agreement.
Kyle and Mandelson were on the west coast of the United States this week, meeting technological bosses, who want to see digital services tax. Mandelson wants to create a technological pact in the UK, including cooperation on the development of artificial intelligence.
Digital services tax was introduced by the former conservative government in April 2020. To ensure that global digital companies pay a tax that reflects the value they receive from customers in the UK.
A 2 percent lump sum tax is applied to companies that have global revenues of more than £ 500 million, and is applied to revenues obtained from the UK.
