Italy could impose a new "web tax" on digital giants as part of its draft budget to the European Union.
The country, which is struggling with mounting debt, may impose a 3% levy on internet transactions on major tech companies like Google and Facebook.
Rome has been struggling to find resources to avoid a sales tax rise worth around €23 billion. The country has twice risked sanctions for its excessive debt.
Italy and the governments of other European nations have long complained that tech giants make substantial profits in their countries but pay little tax as they are domiciled in low-tax jurisdictions, such as Ireland.
“Profits have to be taxed where they are made,” Economy Minister Roberto Gualtieri said on Tuesday.
The Italian web tax will be applied to companies with annual revenues worth at least €750 million and digital services exceeding 5.5 million.
The measure was originally intended to come into effect in 2019 before being pushed back until the following year. It will be implemented through a government decree.
The Treasury forecast in December that the web tax would yield €600 million in revenues from 2020.
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