EU puts digital levy plans on hold in face of US criticism

The European Union has put on hold work on plans for a digital levy to concentrate on finalizing the historic tax decision endorsed by the Group of 20 nations over the weekend

BRUSSELS -- In a gesture of goodwill to the United States, the European Union on Monday put work on plans for a digital tax levy on hold for the moment to concentrate on finalizing the historic tax decision endorsed by the Group of 20 nations over the weekend. In the face of criticism from U.S. Secretary of the Treasury Janet Yellen, the European Commission said its work on the levy that would hit American technology companies would go on ice to allow for smooth cooperation on the political and technical hurdles that still need to be addressed on the G-20 tax decision before the end of October. “We will work together to reach this global agreement,” said EU Economy Commissioner Paolo Gentiloni. "I informed the Secretary Yellen of our decision to put on hold the proposal of the Commission of a digital levy to allow us to be concentrated, working hand-in-hand, to achieve the last mile of this historic agreement.” Finance ministers from the G-20 major economies endorsed a global minimum corporate tax of at least 15%, a measure aimed at putting a floor under tax rates and discouraging companies from using low-rate countries as tax havens.