EU withdraws digital tax - triumph for Apple and Trump!

EU withdraws digital tax - triumph for Apple and Trump!

In the digital world, there are constant new developments that present both companies and states with challenges. A current topic that affects the EU and large tech companies is the withdrawal of the European Commission from its plans for the introduction of a digital tax. This decision is seen as a remarkable victory for tech giants such as Apple, Meta and even ex-President Donald Trump. The plan was originally presented in May to pay the community-related debt of the community. However, this tax is to be anchored in the upcoming seven-year budget of the EU, which is to be published on July 16, 9to5mac more.

But this is not the only tax innovation that the EU is planning. Instead, the introduction of alternative taxes is considered. These contain taxes on tobacco products, levies on electronic devices and corporate taxes for companies with sales of over 50 million euros in the EU. The goal? Generating up to 30 billion euros annually to repay the common debts. However, the implementation of these proposals depends heavily on the political approval of the Member States. There are already concerns from countries such as Italy, Greece and Romania who are for new taxes on e-cigarettes and vapes.

Tax reforms for tobacco products

Another area that has been brought into the focus of the EU concerns the taxation of tobacco products. 16 Member States have spoken out for a fundamental revision of tobacco taxation in order to meet the current health and economic challenges. Outdated regulations cannot keep up with the strongly changed consumer habits and the increase in alternative products such as e-cigarettes, such as Euronews

The European Commission has set itself the ambitious goal by 2040 to create a "tobacco -free generation" in which less than 5 % of the population smoke. Higher taxation could help to keep younger people from smoking. The mix of national taxes and the proposal of uniform EU taxation could help to eliminate unjust price differences and to reduce consumption as a whole.

political hurdles and resistance

The proposals for new taxes and taxes ultimately must be accepted unanimously by all 27 EU member states. This political complexity proves to be a great obstacle, since some countries, especially in Eastern Europe, could react sensitively to changes in taxation. Causes about national sovereignty and the distribution of tax revenue are in the room, as Sweden particularly emphasized. This country considers the idea of a division of tax revenue with the EU to be "completely unacceptable".

The EU and its Member States are faced with the challenge of finding a uniform and at the same time fair approach in order to create both innovative tax solutions and to strengthen the public health system. The action on the political stage will be decisive in the coming months, and whether it will be possible to establish a balanced tax system.