'Google Tax' announced by Chancellor to combat high street crisis
PUBLISHED: 18:03 29 October 2018 | UPDATED: 07:02 30 October 2018
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Tech giants will face a new tax under plans set out by Philip Hammond in his Budget, raising £400m a year.
The Chancellor said a global approach was the best way to deal with multinational online firms, but the UK was prepared to go it alone with a new digital services tax .
The plan, swiftly dubbed the Google tax, is aimed at firms generating at least £500m a year in global revenues and will raise more than £400m a year for the Exchequer.
“It is only right that these global giants, with profitable businesses in the UK, pay their fair share towards supporting our public services,” he said.
He added that the levy would not be online-sales tax on goods ordered over the internet as “such a tax would fall on consumers of those goods - and that is not our intention”.