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U.S. says tax is unfair discrimination against tech groups

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Italian lawmakers discuss how to stiffen terms of the levy

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Rome awaiting stance of new U.S. government after election

By Giuseppe Fonte

ROME, Nov 6 (Reuters) - The United States has recently

renewed calls for Italy to repeal its domestic web tax, people

familiar with the matter told Reuters, saying the U.S.'

insistence increases the risk of retaliation if Rome ignores the

request.

Italy intends to maintain the tax for now, waiting for the

new administration in Washington to show its stance on the

matter, two officials said, asking not to be named due to the

sensitivity of the matter.

Donald Trump has claimed victory following Tuesday's

presidential election.

Washington has threatened tariffs over unilateral digital

taxes in Europe such as the Italian levy, which applies to Meta

Platforms Inc ( META ), Google and Amazon ( AMZN ),

and raises less than 500 million euros ($538.65 million) per

year.

Despite its relatively small level of revenue, the United

States considers the scheme unfair discrimination because it

mainly targets the country's tech companies, the sources said.

The U.S. Treasury was not immediately available for comment.

Italy in 2019 introduced a 3% levy on revenue from internet

transactions for digital companies with sales of at least 750

million euros if at least 5.5 million are made in Italy.

Now, as part of the government's 2025 budget, Prime Minister

Giorgia Meloni plans to remove these minimum conditions for the

tax to be applied, aiming to raise 51.6 million euros on top of

the current revenue of 400 million.

Italy's Treasury has told Washington the removal of the

revenue floors, by increasing the number of companies forced to

pay the tax, would overcome U.S. objections about its

discriminatory nature, one of the sources said.

However, several coalition lawmakers oppose the Treasury's

proposed changes. They argue the tax should keep focusing on

U.S. Big Tech, and are planning amendments to the budget bill

before parliament.

"We must trim the claws of the web giants," said Maurizio

Gasparri, a senior senator with the co-ruling Forza Italia

party.

The proposal being discussed would maintain revenue floors

to shield small and medium-sized enterprises while hiking the

current 3% tax rate.

"An amendment like this would be the best way to get

crucified by the U.S.," the second source said.

($1 = 0.9282 euros)

(Editing by Gavin Jones)