Olaf Scholz, the Finance Minister of Germany, in a meeting of the finance ministers of the European Union in December stated that he is favoring the deal which is binding on the digital tax. He further added that he is in support of the French Model.
He said that if the negotiations continue exactly the way it has been until now then they would be in talks for the next 100 years to come.
This is the reason why he is in support of the French Model and is willing to offer the proceeds to the European Union.
The members of the European Union have a discord over the plan of the European Union that they must tax the giant internet firms which include Google and Facebook. The taxation would be on the turnover of these companies.
Germany had stated that it would do a revision of the proposed plan and that it would exclude itself from the tax activities which have been proposed for the carmakers.
On Monday, the Finance Minister of France stated that they will soon strike an agreement.
In March, the executive Commission of the European Union proposed that the states of the Union will be charging from the big firms on their digital revenue. These firms will include only those which are accused to route their profits in order to avert the taxes.
They will be charging a levy of 3 percent.
The main aim and the plan of the European Union is to charge taxes from all those large firms which have been giving very low rates of taxes on their earnings and as a result of this have been making huge amount of profits.
But this will be requiring the support of all the members of the European Union and it is currently being opposed by many.
Source: Reuters, BusinessInsider
