Washington — The Computer & Communications Industry Association filed comments and will testify at a hearing Monday before the Office of the United States Trade Representative calling for a strong U.S. response to the digital service tax investigations. USTR is soliciting input from the public in the next stage of its Section 301 investigation into the digital taxes of Austria, India, Italy, Spain, Turkey, and the United Kingdom, following its release of the reports in March.
USTR concluded that these taxes are discriminatory against U.S. digital firms. The agency is currently considering what remedial tools at its disposal under Section 301 to use as a response following the report’s conclusions. CCIA filed comments with the U.S. Trade Representative last July in response to the USTR’s query on multiple countries’ digital taxes.
As the OECD-led negotiations continue to seek long-lasting global tax reform appropriate for the digital age, countries should not enact unilateral measures in the form of discriminatory taxes. CCIA welcomes U.S. leadership and active participation in these talks to reach a consensus based solution.
The following can be attributed to CCIA President Matt Schruers:
“CCIA appreciates USTR’s investigation into digital taxes and its careful consideration of remedies aimed at changing the behavior of trading partners violating their commitments. The United States must make clear that unilateral, discriminatory taxes will have consequences. Rather than imposing de facto tariffs on U.S. companies, countries should join international efforts to achieve global tax reform.”