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."