France is reportedly pushing through with its plans to tax a number of tech providers following its failure to get a green light from the European legislation.
Earlier last year, France appealed before the European Commission in the form of two tax proposals that will force technology giants to pay taxes in the country. If approved, tech providers will be taxed by France, irrespective of their presence in the country.
So far, there have been no developments in the proposals. A couple of European Union (EU) member states have expressed concerns about the tax reforms proposed by France. This led to hampered progress for the French government's appeals.
According to WIRED, despite opposition from some EU members, France declared that it will move with or without the approval of the European Commission. Called the French tax, it will extract up to 5 percent of a tech company's French revenues if approved.
President Emmanuel Macron said in his 2017 campaign that he will push for taxes on digital providers including Google, Amazon, and Facebook. French economy minister Bruno Le Maire has been trying to get the support of EU members as well as Macron's approval for the proposed tax reforms.
While some EU states have shown signs of support for France's tax goals, other members have been struggling with the matter. Sweden, Finland, and Denmark are opposed to the idea. Ireland echoed their sentiments, considering that some of the world's biggest tech giants are headquartered in the state.
Furthermore, Germany doesn't want to tarnish its ties with the United States. Economist and fellow at French think-tank IRIS, Rémi Bourgeot said of the matter, "The German government didn't want to worsen things at the moment by following the French initiative."
In line with France's latest tax reform plans, the government is expecting to haul in €500 million per year. Prime Minister Édouard Philippe explained that the amount should help increase Macron's budget for economic and social projects.
Meanwhile, Macron continues to battle against accusations that he is the "president of the rich." The French president spoke before community activists on Monday in hopes of putting the gilets jaunes (yellow vests movement for economic justice) issue to rest.
According to The Guardian, France's president said in his speech that the state should "guarantee social justice," following successive protests about his government. To help with his cause of easing protesting citizens, Macron has started his "great debate" program that aims to obtain insights from locals in terms of democracy and taxation.
