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U.S. warns of possible counter-measures against Czech digital tax

Christian Fernsby |
The Czech Republic could face U.S. counter-measures if it introduces a planned 7% digital tax aimed at global internet giants, the U.S. embassy in Prague said today, after the Czech parliament gave initial support to the new tax.

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Topics: U.S.    CZECH    TAX   

Several European countries are considering such a tax to raise more money from the local businesses of companies such as Google and Facebook, leading the United States to threaten retaliation in support of its tech industry.

Britain has said it will press ahead with its proposed digital tax, while France has put off its plans to wait for broader negotiations within the Organisation for Economic Cooperation and Development (OECD).

The Czech lower house approved the first reading of the digital tax bill on Wednesday.

The bill must pass two more readings and clear the upper house Senate or a new vote in the lower house in case of a veto before it becomes law.


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