The Office of the US Trade Representative (USTR) has published
details of proposed action in its investigation into the UK’s digital
services tax.
In January 2021, the investigation determined that the digital
services tax was ‘unreasonable or discriminatory and burdens or restricts US
commerce, and therefore is actionable’ under the relevant provisions of the US
Trade Act. Proposed actions include imposing ‘additional tariffs of up to 25%’
on imports of certain goods from the UK. The briefing note sets out a list of
products (and commodity codes) which potentially would be covered by the
proposed action.
The USTR is to hold a virtual public hearing on 4 May 2021 to
take comments on the proposed retaliatory measures.
Commenting on the threat of tariffs, John Cullinane, CIOT
Director of Public Policy, said: ‘The UK Government always said that its
unilateral Digital Services Tax would be withdrawn if an acceptable
multilateral deal for taxing multinationals in the digital economy could be
reached through the OECD. Recent signals from the US and others involved in
those negotiations have generally been positive. This latest news – although
apparently ‘just process’ – is a reminder that we are not out of the woods
until a deal is actually made.’
The Office of the US Trade Representative (USTR) has published
details of proposed action in its investigation into the UK’s digital
services tax.
In January 2021, the investigation determined that the digital
services tax was ‘unreasonable or discriminatory and burdens or restricts US
commerce, and therefore is actionable’ under the relevant provisions of the US
Trade Act. Proposed actions include imposing ‘additional tariffs of up to 25%’
on imports of certain goods from the UK. The briefing note sets out a list of
products (and commodity codes) which potentially would be covered by the
proposed action.
The USTR is to hold a virtual public hearing on 4 May 2021 to
take comments on the proposed retaliatory measures.
Commenting on the threat of tariffs, John Cullinane, CIOT
Director of Public Policy, said: ‘The UK Government always said that its
unilateral Digital Services Tax would be withdrawn if an acceptable
multilateral deal for taxing multinationals in the digital economy could be
reached through the OECD. Recent signals from the US and others involved in
those negotiations have generally been positive. This latest news – although
apparently ‘just process’ – is a reminder that we are not out of the woods
until a deal is actually made.’
