As we all know that US President Donald Trump has decided to tax French products like Champagne, Wine, Roquefort, Cheese, make up, products, homeware etc. Total Import tax would be around $2.4 Billion on these products. This is mainly being done in retaliation by the French Government to impose a new digital services tax.
US has said that this digital services tax penalizes big Tech Giants like Google, Amazon and Facebook to name a few.
This digital tax has been imposed to avoid dodging of taxes by these firms. French Government has said that it has decided to impose 3% tax on any digital company where the revenue is more than $850 M of which 25 M Euros is generated in France.
This Tax will go into effect from early 2019 and is expected to bring in 400 M Euros.
About 30 Companies are willing to pay this tax among them are Alphabet, Facebook, Amazon, Microsoft.
Imposing of Tax by the Trump Administration would also be difficult for UK.
Labor Party leader has decided to take an election pledge to provide home and businesses in the UK free full fibre broadband by 2030.
Prime Minister Boris Johnson has also of the same view to impose tax on the above mentioned companies.