Internet titans revealed for 10% financial levy, as declared by Culture Minister Weimer - Culture Minister Weimer Imposes 10% Tax on Internet Businesses
In Germany, discussions are underway regarding the potential introduction of a 10% digital tax aimed at internet giants such as Google (Alphabet) and Meta. Culture Minister Wolfram Weimer has announced this proposal, targeting large online platforms that, according to him, reap high profits in Germany while making minimal tax contributions and investing little back into society.
In a conversation with stern, Weimer criticized these digital behemoths for benefiting significantly from Germany's media and cultural landscape, while contributing negligible taxes and investing too meagerly. He accused the companies of clever tax avoidance, a practice he deems unfair and has led to ongoing disputes with national and European authorities for years.
The minister also expressed concern over monopolistic structures that potentially threaten media diversity. In light of these concerns, he has invited the leadership of Google and other key industry representatives to talks at the Chancellery to explore alternative solutions. This may include voluntary self-commitments.
The coalition agreement between Union and SPD includes an examination of a tax on online platforms that use media content. Preliminary talks within the coalition have left Weimer optimistic about potential unity between the Union, Social Democrats, and Greens on this issue. However, no final decision or legislative proposal has been enacted at this stage, and the measure remains under consideration.
Austria has already implemented a similar platform tax, which requires large online platforms to withhold 5% of their advertising revenue. According to Weimer, this move has helped these companies make a small tax contribution, reducing their massive profit margins slightly and fostering competition. He finds Austria's experience with a platform tax convincing.
This news comes as part of the German government's broader efforts to regulate and tax digital platforms more effectively within the country, acknowledging the potential economic impact and feasibility of such a tax while being mindful of possible international responses or retaliatory measures.
- The Minister, in his discussion with stern, lamented that large digital companies like Google and Meta, which benefit substantially from Germany's media and cultural landscape, are making minimal tax contributions and investing insufficiently, thereby demonstrating an unfair practice of clever tax avoidance.
- Advocating for a fairer share of the financial burden, Weimer suggested that the leadership of online giants, such as Google, should be encouraged to engage in voluntary self-commitments or alternative solutions, following Austria's example of implementing a platform tax to make a small tax contribution, reduce profit margins, and foster competition.
