WASHINGTON – Today, global tech trade association ITI issued the following statement in response to the U.S. Trade Representative’s (USTR) announcement that it is proceeding with the public notice and comment process for possible trade actions related to Section 301 investigations into digital services taxes adopted by Austria, India, Italy, Spain, Turkey and the United Kingdom:
“Today’s announcement from USTR underscores the serious and growing threat of unilateral digital services taxes,” said Jason Oxman, ITI President and CEO. “The harmful fragmentation caused by the growing adoption of such tax measures extends globally and compromises the ability for all companies to do business across borders. Unilateral taxes also detract from the ability of countries participating in multilateral negotiations to reach a sustainable solution. We strongly encourage all countries that have or are seeking to adopt unilateral digital services taxes – including those identified in today’s announcement – to withdraw their measures. Further, we respectfully urge all participating governments to redouble efforts to reach a successful and lasting tax policy resolution to the challenges arising from the digitalization of the global economy through the OECD/G20 Inclusive Framework.”
USTR also announced that it is closing its Section 301 digital services taxes investigations in Brazil, the Czech Republic, the European Union, and Indonesia, noting that if any of these governments moves forward with adoption or implementation of a DST, it may initiate new investigations.