ROME, Dec 11 (Reuters) - Italy will focus its domestic
web tax on big tech companies while shunning small and
medium-sized enterprises (SMEs) and publishing groups,
policymakers said on Wednesday.
The move comes despite recent renewed calls from the United
States for the Italian government to scrap the scheme.
In 2019, Rome introduced a 3% levy on revenue from internet
transactions for digital companies with annual sales of at least
750 million euros ($788.40 million) if at least 5.5 million are
made in Italy.
As part of the budget bill, the Treasury tried to remove
these floors for the tax to be applied, in a move critics said
would be a blow to smaller companies.
Economy Minister Giancarlo Giorgetti has said broadening the
scope of Italy's web tax could help the government avoid clashes
with the United States, which considers the scheme unfairly
discriminatory as it mainly targets U.S. tech companies such as
Meta Platforms ( META ), Google and Amazon ( AMZN ).
However, after skirmishes with the co-ruling Forza Italia
party, the government is leaning towards reinstating the 750
million euro revenue floor, a government official and some
lawmakers said.
Rome also wants to cut the IRES corporate tax for companies
that hire and invest under certain conditions.
The measure has an estimated cost of around 400 million
euros, which the Treasury plans to cover by seeking an
additional contribution from banks and insurers, lawmakers
added.
Italy expects to raise more than 5 billion euros from the
financial sector over the next three years through a package of
measures already included in Rome's 2025 budget.
($1 = 0.9513 euros)