Publish Date: Thu, 22 Mar 2018 05:44 PM (IST) 
(Business desk). Policy makers of the European Union (EU) have offered a new tax on technical giants such as Google and Facebook on Wednesday. However, this proposal has been proposed by the EU at the moment. With this new tax, the EU can earn $ 6.2 billion. Policy makers believe that it is a means of taxing tax on a company's earnings in a reasonable way.
This offer will increase the difficulties of companies who do digital business and they have users and customers in huge numbers. Whereas, it will benefit those countries which earn less revenue from them. However, this proposal will have to go through the approval of several rounds for approval and it will work to increase trade tension between Europe and the US.
European Union's top financial and tax official Pierre Moskovici said, "The digital revolution has overturned the economies. Your just one click triggers the full range of commercial transactions. As a result, there is a substantial amount of cash earning. This legal deficit is no longer acceptable. "
What is Proposal: Proposal submitted on behalf of the EU has said that tax will be levied on 3% of the revenue generated from those activities, where the information of the user helps the companies make money. On earning from Google's targeted advertising, Facebook will have to sell the information of the users and Amazon will have to pay on the marketplace fees, which it charges on a customer to sell to another.
When asked about the purpose of this proposal, EU policy makers said that it was to be done for fairness. Any companies in Europe who are in digital business pay 9.5 per cent tax, while companies with traditional business models have to pay 23.2 per cent tax.
By basant mahali