The Czech Republic‘s government is uncertain and worried that its proposed rate of 7% on digital tax on tech companies with global turnoverover 750 million euros ($809 million) might be too high compared to other EU states. Therefore, the parliament’s budgetary committee has unanimously delayed a discussion about reducing the rate until 10 June to give more time and seek consensus on the rate amongst the governing parties. 5% rate of tax is being considered by the Czech government according to the Finance Minister and there is an agreement that it should not be less than 3%.
The proposal is a part of EU countries move to impose higher taxes on tech giant companies such as Facebook, Google and Amazon as they wait for wider, the OECD-led effort to overhaul how the digital economy is taxed. The OECD is currently trying to get more than 130 countries to agree to a global digital tax plan by the end of 2020 as Covid-19 pandemic has delayed this effort.