On Tuesday 9 October, Paul Tang (S&D, Netherlands) presented the European Parliament's committee on economic and monetary affairs (ECON) with his draft report for opinion on the proposal for a 3% tax (see EUROPE 11986) on the gross earnings of the activities of digital platforms ('digital services tax' or DST).
The main amendments suggested (see EUROPE 12111) are to increase the tax to 5% and to extend its scope of application to video, audio or text content using a digital interface and the sale of goods or services online via e-commerce platforms, which would make it possible to include companies such as Amazon and Netflix, he explained.
Concerning these two suggestions, the EPP and ECR Groups counselled caution, requesting a prior detailed impact analysis of these changes, whilst the GUE/NGL Group expressed delight at the proposed extension. The S&D, ALDE, Greens/EFA, EFDD and ENF Groups did not comment.
Tang was attentive to his colleagues' calls, but argued the need to acknowledge that the EU will have to "fly in the dark" for this new tax. "Any impact assessment is not an exact science", he pointed out, adding that it would also require "political will and political determination".
The report by Dariusz Rosati (EPP, Poland) on the long-term 'structural' solution supports the line taken by the European Commission, suggesting very few changes from the initial proposal. The rapporteur also considers that due to the uncertainty surrounding the definitions of 'significant digital presence' and of digital services, the Commission should publish guidelines for the national tax authorities and businesses.
Rosati, who is deeply committed to the principle of 'fiscal neutrality', considers that the proposal should not discriminate between European and non-European businesses. He also recommends excluding SMEs from its scope of application.
Although during the first exchange of views in committee (see EUROPE 12084), he questioned the relevance of the thresholds set out in the proposal to encompass the principle of 'significant digital presence', he finally left these unchanged in his draft report.
The MEPs have until 16 October to table their amendments to these two reports, ahead of a vote in committee scheduled for 3 December. (Original version in French by Marion Fontana)