Responding to the Chancellor’s announcement of a digital tax for large technology companies operating in the UK, Christian Aid said the proposals are unambitious and show once again that tech giants are seemingly “too powerful to tax effectively”.
Toby Quantrill, Economic Justice Lead at Christian Aid, said
“The Chancellor may receive lots of fanfare for this “digital tax” but the Treasury expects an income of only £400 million, which is tiny compared to the £50 billion in profits these companies make. In reality, this is tantamount to an admission that these companies are too powerful to tax effectively.
“Systemic tax dodging by multinational companies continues to drain the UK and developing counties of the tax revenue they are due, a cost which can be counted in lives as well as unrepaired potholes. If they continue to shift profits and avoid their responsibilities, governments must bring these giant global companies into line. The digital economy should contribute fairly to the tax base in the UK, where they do so much of their business.
“If the UK as the 6th largest economy can’t impose a credible tax that satisfies public expectations about paying what you owe, what hope do developing country governments have? As a bolder step, the UK government has it within its power to move immediately and unilaterally to force companies to be fully transparent about where they operate, where they makes profits, and where they pay tax. But it continues to bottle even this simple action.”
Ends
