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German digital ministry treads cautiously over online platform levy
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German digital ministry treads cautiously over online platform levy
May 30, 2025 8:36 AM

BERLIN, May 30 (Reuters) - Germany's new digital

ministry said any levy on online platforms would have to be

internationally coordinated and not result in higher prices for

end consumers, in a sign on Friday of possible divisions within

government over plans for such a tax.

The Minister of State for Culture Wolfram Weimer had said in

an interview published on Thursday that officials were working

on a levy which would hit platforms such as Alphabet's Google

and Meta's Facebook.

A levy of 10% would be reasonable, he said - without

specifying if this were a tax on revenue or profit.

Germany's ruling parties agreed earlier this year to

consider the introduction of a digital services levy, but this

was not on the list of projects the coalition wants to

prioritise.

Weimer's proposal had not yet been agreed upon by the

government, officials had said.

"The decisive factors in evaluating such a levy are that it

is designed in a targeted manner, is internationally coordinated

and compatible with EU law, that any potential revenue benefits

Germany as a hub for innovation, and that ultimately no higher

prices are passed on to end consumers," a spokesperson for the

digital ministry said.

The proposal comes as Chancellor Friedrich Merz is expected

to travel to Washington soon to meet with U.S. President Donald

Trump, although a trip has not yet been officially announced.

Trump has in the past said he will not allow foreign governments

to "appropriate America's tax base for their own benefit".

Industry association Bitkom warned that the levy could lead

to price increases that would impact businesses, public

administrations, and consumers.

"These price increases will hinder and slow down the

urgently needed acceleration of the digitalization of public

services and the digital transformation of companies," said

Bitkom President Ralf Wintergerst. "What we need is not more,

but fewer financial burdens on digital goods and services."

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