UK BA backs EU commission calls for fairer taxation on digital economy
In the UK, the Booksellers Association (BA) has expressed support for the EU Commission’s call for fairer taxation of the digital market, reports the Bookseller.
As part of the discussions around the EU’s planned Digital Single Market, the commission released a statement that said current tax rules, originally designed for bricks-and-mortar businesses, are ‘outdated’, and has resulted in digital companies being taxed at half or less-than-half the rate of traditional companies.
This creates a ‘free rider position’ for digital companies, which ‘tilts the playing field in their favour compared to established businesses’, said the Commission.
The Commission added that it will aim to ensure a fair and coherent approach to taxation in its planned Digital Single Market, stressing that ‘the EU needs a modern tax framework to seize digital opportunities, while also ensuring fair taxation’.
Chief executive of the BA, Tim Godfray, welcomed the announcement, saying it ‘comes after many years of hard work by the BA on behalf of our members’ arguing that ‘the current system has allowed an unequal playing field to exist in the book trade, one that is both damaging to booksellers, consumers and the future of our cultural medium in general’.
‘In making these representations the BA was always clear that we did not seek unfair advantage for our members over others,’ said Godfray. ‘What we sought was a level playing field for competition to flourish on. In this spirit, we welcome this news, and will seek to do all we can to see it delivered.’
The EU announcement will provide the basis for further discussion among EU member states at the Tallinn Digital Summit on 29 September.
Category: International news