Germany’s government, led by the black-red coalition, is considering a bold move to tax digital internet giants like Google and Meta, following the Austrian model. The plan to impose a 10% tax on the companies’ digital revenue has been met with enthusiasm from the Minister of State for Culture and Media, Wolfram Weimer.
Weimer, a close ally of Chancellor Friedrich Merz, has criticized the tech giants for their unsolid business practices, stating that they engage in clever tax evasion and have been in conflict with national and European authorities for years. He believes that the proposed tax would help to create a more level playing field and promote media diversity, which is under threat due to the monopolistic structures of the internet giants.
The Austrian digital tax, which has been in place since 2020, requires large online platforms to pay 5% of their advertising revenue in taxes. Weimer hinted that the German government is considering a similar approach and that Chancellor Merz is likely to support the plan, despite the Union’s usual reluctance to raise taxes.
The proposal is part of the coalition agreement between the Union and the Social Democratic Party and Weimer believes that there is a strong consensus among the coalition parties, including the Greens, to take action against the tech giants. The plan is currently being prepared and will be presented to the government in the coming weeks.