Change in AB Innovation: Corporate Tax is Coming Instead of Digital Tax

New Tax Strategy from the European Commission

According to documents obtained by Bloomberg, the European Union (EU) has not included the **digital services tax** in its revenue-raising plan aimed at technology giants like Amazon, Google, and Meta.

New Tax Proposals

Instead, the EU proposed a new corporate tax, a special consumption tax on tobacco, and an electronic waste tax. The aim of the new corporate tax is to ensure that these large companies contribute more to the EU budget.

US Response

The US has described digital services taxes as "discriminatory," particularly during the Trump administration, stating that these taxes primarily target American technology companies. This situation has led to discussions in international relations.

Canada's Steps and Possible European Reactions

Canada had withdrawn its own digital services tax to restart trade negotiations with the **Trump administration**. This move has sparked speculation about whether European countries will take similar action.