Pompeo urges France not to approve digital services tax

France and Britain as well as Italy and Spain are pushing ahead with plans for such taxes.

Update: 2019-04-05 08:11 GMT
In March, the European Union's executive arm proposed a 3 percent tax on big digital firms' online revenues accusing them of funnelling profits through member states with the lowest tax rates to keep their overall tax down.

US Secretary of State Mike Pompeo urged France in a meeting with his French counterpart Jean-Yves Le Drian on Thursday not to approve a digital services tax, saying it would hurt US technology firms, the US State Department said.

France and Britain as well as Italy and Spain are pushing ahead with plans for such taxes after EU countries failed to reach an agreement for the bloc as a whole.

“Secretary Pompeo urged France not to approve a digital services tax, which would negatively impact large US technology firms and the French citizens who use them,” the State Department said after Pompeo met Le Drian on the sidelines of a NATO ministerial meeting Washington.

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