European Commission likely to delay putting forward digital levy plan: FT

imageStock Markets8 hours ago (Jul 11, 2021 20:05)

© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium May 5, 2021. REUTERS/Yves Herman/File Photo/File Photo

(Reuters) – The European Commission is likely to delay putting forward its plans for a digital levy until the autumn to try to improve the chances of a global corporate tax reform deal, the Financial Times reported on Sunday.

The European Commission had come under pressure from U.S. Treasury Secretary Janet Yellen to shelve its digital tax proposal, the newspaper said, citing people familiar with the discussions.

The levy, to fund Europe’s recovery from the COVID-19 pandemic, would apply to hundreds of companies in the digital economy, the majority of them European, its executive vice-president Margrethe Vestager said this month.

She declined to provide details on which companies would be affected or the size of the levy.

Brussels was due to put forward its proposals this week, but had pushed the date back to July 20, the FT said.

“The commission is reflecting on how to support the historic G20 deal. In that context we are considering a possible postponement to the autumn of the detailed proposal on the digital tax,” an unidentified official told the newspaper

The official stressed the final decision had not yet been taken and would be subject to discussion when commission president Ursula von der Leyen meets Yellen on Monday, the newspaper said.

European Commission likely to delay putting forward digital levy plan: FT

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