German Ministry Of Digital Affairs Be Careful Regarding Online Platform Tax Proposal
JAKARTA - The German Ministry of Digital Affairs stated that any levies on online platforms must be coordinated internationally and should not burden final consumers at a higher price. This statement indicates the potential for dissent in the government regarding the digital tax plan.
Germany's Minister of Culture, Wolfram Weimer, previously said in an interview published on Thursday, May 29, that the German government is reviewing levies to be charged on platforms such as Alphabet's Google and Meta's Facebook.
According to Weimer, the fair levy is 10%, although he did not explain whether it was calculated from revenue or profit.
The German government coalition had previously agreed to consider introducing digital service levies, but this plan is not included in the list of the top priorities of current government projects. Government officials also confirmed that Weimer's proposal had not been officially agreed upon.
The determinant factor in evaluating such levies is that the design must be on target, internationally coordinated and in accordance with EU law, providing benefits for Germany as a center of innovation, and most importantly not causing price increases for final consumers, said a spokesman for the German Ministry of Digital Affairs.
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This proposal comes ahead of a possible visit by Chancellor Friedrich Merz to Washington to meet with US President Donald Trump. Although it has not been officially announced, Trump has previously stated that he will not allow foreign governments to "take advantage of the US tax base."
The Bitkom industry association warns that the levy could lead to an increase in prices that will have an impact on business, public administration, and consumers.
"This price increase will hamper and slow the acceleration of public service digitization and the company's digital transformation that is urgently needed today," said Bitkom President Ralf Wintergerst, quoted by VOI from Reuters. All we need is a reduction in financial burdens on digital goods and services, not additions."