Thank you to everyone who contacted me about additional taxes on companies like Amazon and Google.
I understand the concerns and completely agree that digital services companies must contribute fairly to funding our vital public services. This was a message I passed on to the Chancellor.
The way in which businesses work is changing. The UK is leading international efforts to reform the international rules around where profit is made and where it should be taxed.
At the Autumn Budget 2018, the Chancellor announced that a UK Digital Services Tax will be introduced, targeting tax on UK-generated revenues of specific digital platform business models. This new 2 per cent tax will come into effect from April 2020, paid only by profitable companies which generate at least £500 million a year in revenue, and is expected to raise over £400 million a year for funding public services. Should a globally agreed solution present itself in the meantime, the Government will consider adopting this in place of the UK Digital Services Tax.
There is more work to be done. The changes made in the Budget will help and we must continue to lead international efforts to reform the international rules.