France is considering ways to Internet tax

Published:2012/7/17 1:48:00 Author:Ecco From:SeekIC

The Agence France-Presse (AFP) report indicates that the French government is considering ways to tax Internet based companies that contrive to sell products and services in France without paying much to the government. So the tax is the needed.

Yves Le Mouel, head of the French Telecommunications Federation (FFT), made a report which indicated that Google, Apple, Facebook and Amazon have annual sales of five billion euros (about $6.1 billion) in France.

The tax is an old question since the Internet first became popular and facilitated international sales in the 1990s. To some individual countries, internet tax is too difficult to address and high internet tax may damage the developing knowledge-based and Internet-enabled societies. The French government has now pushed a study due later this year that will again look at levies on Internet-based companies.

The report also quoted French ministries as saying in a statement, "Our fiscal system has trouble integrating new transaction forms generated by the digital economy. The result is a loss of income for public finances and a competitive disadvantage for French companies with respect to international groups which have organized themselves to evade or diminish their taxes."

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