Sun, 23 Mar 2025

Sun, 23 Mar 2025 UK mulls big tech tax changes to avoid US tariffs

Rachel Reeves says talks are "ongoing" about the Digital Services Tax, paid by giants like Amazon.

* Chancellor Rachel Reeves suggests that UK taxes on big tech firms may be changed as part of a deal to avoid US President Donald Trump's next tariffs.
* The Digital Services Tax (DST) could be altered in exchange for the US not imposing more import taxes on the UK.
* The 2% levy introduced in 2020 raises around £800m per year for the UK, but Labour is considering changes to it as part of a trade deal with the US.
* The Liberal Democrats have criticized the potential change, saying that Labour is "at risk of losing its moral compass".
* Reeves said that discussions are ongoing and that the government wants to make progress while preserving free and open trade.
* Trump has announced tariffs on goods from other countries, including the UK, since taking office in January.
* The companies affected by the potential change include Amazon and Meta.
  >>