Czech govt approves digital tax aimed at internet giants – ministry

Czech govt approves digital tax aimed at internet giants – ministry

The Czech government approved a seven percent digital tax proposal on Monday aimed at boosting state coffers by taxing advertising by global internet giants like Google and Facebook, the finance ministry said.

The proposed tax, which still must make it past lawmakers in parliament, covers revenue gained from targeted advertising, providing digital marketplaces, and user data sales, Reuters said. It will be aimed at services provided to Czech users.

The tax would apply to companies with global revenue over €750 million ($826.5 million) annually, 100 million crown ($4.32 million) turnover in the Czech market and a reach exceeding 200,000 user accounts.

The finance ministry said it estimated the tax, which it said would be temporary until a global deal could be reached, will raise 2.1 billion crowns next year if it takes effect in June, and about five billion annually in the following years.

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