France finance commission adopts amendment to increase digital tax

The French National Assembly's finance commission has adopted an amendment to the 2027 finance bill that aims to significantly increase taxes on digital giants. If passed by the full assembly, the measure would raise the tax rate on large digital companies from 3% to 15%. To ensure the tax targets only the largest corporations, the global revenue threshold for taxation would also increase from 750 million euros to 2 billion euros.

This proposal is expected to increase annual tax revenues from approximately 890 million euros to between 3.5 and 4 billion euros. While the amendment has support from various political factions, it faces potential challenges, including the risk of retaliatory measures from the United States.

Separately, a different proposal from the Socialist Party to tax internet data flows at 5.5 cents per gigabyte was rejected by the finance commission. That specific proposal aimed to generate 10 billion euros but was criticized due to technical complexities and the potential for high costs to be passed down to individual consumers.