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Letta says web tax will be subject to EU coordination

Commission says measure breaches European law

20 December, 13:53
Letta says web tax will be subject to EU coordination (ANSA) - Brussels, December 20 - Premier Enrico Letta said Friday that the Italian government's plans for a 'web tax' will be subject to EU coordination after the European Commission said it may breach EU law. "The web tax needs coordination with the European rules and it's important that we've managed to have it included as one of the points the EU must resolve as soon as possible," he said.

The Web tax, included in the government's 2014 budget package, aims to force companies that advertise products over the Internet in Italy to do so only through companies that have a registered tax presence in the nation. It was changed earlier this week to exclude taxes on the sale of goods online following complaints about the plan, leaving the law applicable to advertising only. As such, companies like Amazon would not be harmed by the measure, though ones like Google, Yahoo Inc, and Facebook Inc will likely face higher taxes locally.

Emer Traynor, spokeswoman for EU Taxation Commissioner Algirdas Semeta, said Thursday that the measure was "contrary to the fundamental liberties and the principles of non-discrimination inherent in the (EU) treaties" in his current form The European Commission said Thursday that Italy's plans to introduce a so-called Web tax to generate fresh inflows into state coffers from Internet companies may contravene European law. Emer Traynor, spokeswoman for EU Taxation Commissioner Algirdas Semeta, said the measure contained in Premier Enrico Letta's 2014 budget bill was "contrary to the fundamental liberties and the principles of non-discrimination inherent in the (EU) treaties" in his current form The comments were made by Emer Traynor, spokeswoman for EU taxation commissioner Algirdas Semeta. The Web tax it aims to force companies that advertise products over the Internet in Italy to do so only through companies that have a registered tax presence in the nation. It was changed earlier this week to exclude taxes on the sale of goods online following complaints about the plan, leaving the law applicable to advertising only. As such, companies like Amazon would not be harmed by the measure, though ones like Google, Yahoo Inc, and Facebook Inc will likely face higher taxes locally.

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