Digital Technology: Taxation

(asked on 17th June 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he has made an assessment of the potential merits of increasing the Digital Services Tax from 2 per cent to 10 per cent to help rebuild the economy following Covid-19' and if he will make it his policy to implement that change.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 24th June 2021

It is right that profitable companies share in the burden of restoring the public finances to a sustainable footing following the COVID-19 pandemic. In order to support this goal, the Chancellor announced at the Budget that Corporation Tax would increase to 25% from April 2023, raising over £45 billion over the next five years.

The Government supports the G7 agreement on global tax reform that would lead to large digital businesses paying more tax here in the UK and UK HQ multinationals paying more tax on their global profits, helping to fund public services and level the playing field for UK firms.

The DST is intended to serve as a temporary solution before a global digital tax solution is reached. It is the Government’s strong preference to secure a comprehensive global solution on digital tax and remove the DST once this is implemented.

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