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France unveils plans for its GAFA tax, a new taxation on digital companies

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France unveils plans for its GAFA tax, a new taxation on digital companies
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French Finance Minister Bruno Le Maire has unveiled plans for France's new tax on digital giants, calling it a "tax of the 21st Century."

Dubbed the GAFA tax, which is an acronym of the US companies it targets: Google, Apple, Facebook and Amazon, the proposed levy will impose a 3% revenue tax on digital companies with global revenues above €750 million and above €25 million in France.

The French Economy Ministry said it believed the tax would raise €500 million per year.

Le Maire told reporters on Wednesday that by "building the tax of the 21st Century," he hoped it would "restore fiscal justice."

While the tax will only apply to France, he said he would continue to campaign to develop it internationally.

"Without the mobilisation of France, the taxation of the digital giants would be stalled at the international level," Le Maire said on Wednesday.

"I will propose next week to all our European partners that we define a joint European position on the taxation of large digital companies to defend at international level."

The EU has so far been unable to agree a union-wide tax due to concerns from lower-tax countries, such as Ireland, where many of these digital companies currently benefit.

Several countries are also concerned over potentially provoking the US to impose a similar levy on European countries with bases across the Atlantic.

In a statement sent to Euronews, a Google spokesperson said: "We always pay all of the taxes due and comply with the tax laws in every country we operate in around the world."

"Google pays the vast majority of its corporate income tax in the United States, and we have paid a global effective tax rate of 23% over the last ten years.”

Euronews has reached out to the other listed digital giants for comment.