Italian Government Wants To Force Online Companies To Pay More Tax

The largest party in Italy’s coalition government has proposed raising about €1 billion for the budget through a new law that would force companies like Google and Amazon to pay more tax in the country.

Dubbed the “Google Tax”, the measure would require online businesses that sell or advertise in Italy, to use services that are registered and taxed in the country.  It has been criticised for being unrealistic, but is supported by the leadership of the Democratic Party – the dominant political force in the current coalition.

Solving budget problems

According to Reuters, the proposal aims to tax large companies by legally forcing them to use local advertising agencies and other online services, rather than those registered in countries with attractive tax climates, like Luxemburg or Ireland.

It was drafted by the lower house budget committee chairman Francesco Boccia, who said it was unacceptable that online purchases made by Italians were raising the profits of companies that have no interest in developing the Italian economy.

This is not the first time Italian politicians have attempted to claw back taxes from large online businesses, but so far no such initiatives have made it into law. Critics say that the latest proposal is not realistic, and does not recognise how online businesses work.

If Boccia’s proposal is accepted, it could come into force when the government approves the new budget for 2014. But to do this, the Democratic Party has to achieve the considerable task of convincing its coalition partners – the liberal-conservative People of Freedom party, led by Silvio Berlusconi.

What do you know about Europe’s role in Tech history? Take our quiz!

Max Smolaks

Max 'Beast from the East' Smolaks covers open source, public sector, startups and technology of the future at TechWeekEurope. If you find him looking lost on the streets of London, feed him coffee and sugar.

Recent Posts

Generative AI Not Replacing UK Jobs, Study Finds

Study finds UK organisations broadly deploying generative AI to support existing jobs, but execs say…

7 hours ago

Google Must Face Trial In Ad Tech Monopoly Case

Google loses bid for summary judgement as judge says 'too many facts in dispute' as…

20 hours ago

Silicon In Focus Podcast: Feeding the Machine

Learn how your business can meet the challenges associated with managing data across multiple platforms…

21 hours ago

Apple, Meta Likely To Face EU Antitrust Charges

Apple, Facebook parent Meta reportedly likely to face EU antitrust charges before August under new…

21 hours ago

Adobe Shares Jump On AI Success

Adobe shares post biggest gains in more than four years after it reports user take-up…

22 hours ago

Winklevoss’ Gemini To Pay $50m In Crypto Fraud Settlement

Winklevoss twins' Gemini Trust to pay $50m to settle cypto fraud claims over failed Gemini…

22 hours ago