France approves tech companies tax act
The French Senate endorsed the so-called GAFA act which would target Google, Apple, Facebook, Amazon, and other major tech companies with a 3% percent tax. It’s the first time a major nation has passed such a bill.
DW reports that “France imposed a 3% additional tax on companies including Google and Facebook on Thursday, despite US opposition.”
Both the French Senate and the lower-house National Assembly supported the move.
“The bill is dubbed GAFA for targeting four US heavyweights: Google, Apple, Facebook, and Amazon. However, French officials stressed the law will affect around 30 companies, including some from China, Germany, Spain and the UK, not just the US. The bill focuses on companies using consumer data to sell online advertising, have annual global sales of over 750 million euros, and revenue exceeding 25 million euros in France.”
With the Thursday vote, France became the first major economy to pass such a tax law. The French budget is due to receive up to €500 million ($563 million) per year through the GAFA tax, and this income is expected to rise “quickly,” according to the French Finance Ministry.