PublishedMarch 11, 2020

CCIA Critical of U.K. Budget’s Inclusion of Digital Services Tax

Washington — The United Kingdom presented its 2020 Budget which announced that the UK will move forward with legislation to introduce a digital services tax of 2 percent. The tax would be paid on an annual basis, with accruals beginning April 1, 2020.

The Computer & Communications Industry Association has long warned against discriminatory Internet taxes, and has called for an appropriate response from U.S. officials. CCIA remains supportive of the ongoing work taking place at the OECD to reach lasting solutions regarding taxation.

The following can be attributed to CCIA President Matt Schruers:

“At a time when the U.S. is poised to begin negotiations with the UK on a comprehensive free trade agreement, the UK’s decision to follow other countries in pursuing discriminatory taxes against U.S. exporters is unfortunate and will threaten the strong U.S.-UK trade-in-services relationship. Rather than pursuing taxes that guarantee trade conflicts, countries must remain committed to the ongoing multilateral process at the OECD to achieve lasting solutions.”

For media inquiries, please contact: Heather Greenfield [email protected]

 

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