French lawmakers on Monday approved a new tax on Electronic giants such as Facebook and Apple that has angered the United States of America, with Finance Minister Bruno Le Maire Demonstrating that France was proud to be in the vanguard of such a Movement.
The United States has advocated its NATO ally to drop the plan, together with US Secretary of State Mike Pompeo warning last week that it would hurt both American firms and the French citizens who use the programs.
The measure was approved by 55 votes against four in the National Assembly, together with five abstentions. It is going to then be put to vote in the Senate, or upper house, before becoming law.
The legislation, dubbed”Gafa” after Google, Amazon, Facebook, and Apple, comes amid increasing public outrage at the minimal tax paid by some of the planet’s richest firms.
“France is honoured to be leading on such subjects,” Le Maire informed parliament before the vote, stating that the draft constituted a”measure… towards a fairer and more efficient taxation to the 21st century”
Responding to the criticism from the USA, Le Maire said France was”determined” to press with the legislation and could be”autonomous” on fiscal issues.
He explained it was”unacceptable” that electronic giants could make considerable profits from user information to ensure the”profits are produced in France however, the taxes are imposed abroad”.
Last month, France unveiled the draft legislation to set a 3 percent tax on electronic advertisements, the sale of private data and other revenue for any technology firm that earns over EUR 750 million ($840 million) globally each year.
France is seeking to agree that the legislation on a national level following a European Union-wide effort was scuttled by low-tax countries like Ireland, which have wooed large technology firms.
However, Le Maire insisted that a”good alternative in the long term will be a multilateral solution,” vowing not to let up in efforts for an agreement within the Organisation for Economic Cooperation and Development (OECD).