The European Union (EU) has announced it is temporarily suspending work on its plans to introduce a digital levy in order to concentrate on finalising the historic decision.
Following EU member states voicing their support for the levy, the EU was criticised by the U.S. who revealed any levy would detrimentally impact American technology companies.
In response, the EU agreed to halt the plans in order to iron out any political and economic hurdles that may arise before the G-20 tax decision in November 2021.
Recently, the finance ministers of the G-20’s major economies agreed to a global minimum corporate tax of at least 15%, which would aim at discouraging companies from using low-rate countries as tax havens.
Dan Ferrie, the EU’s spokesman, said: “Successfully concluding this will require a final effort, a final push from all parties. And the (EU) Commission is committed to focusing on that effort.
“For this reason, we have decided to put on hold our work on a proposal for a digital levy as a new EU resource during this period.”