Commenting on plans currently under discussion to introduce a tax for digital companies, eco Süme, Chair of the Board at eco, has the following to say:
“The plans currently under discussion at EU level to tax digital companies are misguided. We need a coherent tax system that applies the same fair and comprehensible rules to all market participants.” Corresponding reforms would have to take place at OECD level. “The plans of the EU Commission explicitly discriminate against the digital industry by wanting to impose a separate tax on online advertising or by proposing a so-called search engine tax. Plans for an extra taxation on revenues from user data, to be imposed exclusively on digital companies, are also objectionable. Provisions envisaged by the Commission to mitigate the effect for small and medium-sized enterprises and to avoid double taxation do not mask this,” Süme continues. Süme is particularly critical of the negative effects of such special taxation on the digitalization of industry and SMEs in Germany. “Germany already has a lot of catching up to do here and a further delay in the digitalization of companies would have a negative impact on growth and the industry location as a whole,” states Süme. Such special taxation would also run counter to the realization of the European Digital Single Market.
