Plans for a potential digital levy on large corporations remain largely undefined, according to a recent response from the German federal government to a parliamentary inquiry from the Green Party, as reported by the news magazine “Stern”. The government is currently examining “various designs for a possible levy on online platforms” the response states.
Misbah Khan, Deputy Parliamentary Group Leader of the Green Party, criticized the lack of concrete details, stating that previously voiced suggestions from State Minister for Culture, Wolfram Weimer, regarding the potential rate of the levy, the selection of affected platforms and the intended use of funds, have remained “completely unsubstantiated”. Khan suggested the initiative currently amounts to little more than a non-binding exploratory task. She emphasized that effective governance requires more than headlines and interview appearances.
The precise scope of the exploratory mandate outlined in the coalition agreement remains unclear. Furthermore, State Minister Weimer’s response doesn’t specify which platforms might be subject to the levy. When asked to clarify the definition of “online platforms” and which common business models of digital corporations would be impacted, Weimer indicated this is still under examination. “A final definition of the term ‘online platform’ in the context of the exploratory task does not currently exist” the response reads.
Weimer previously told “Stern” that a levy rate of ten percent would be considered moderate and legitimate. However, this assertion is not reiterated within the government’s response. The rate, along with whether the levy would be implemented through taxation or a special fiscal assessment, the basis for calculation, potential thresholds and “possible impacts of these parameters yet to be determined on the German economy” remain part of the ongoing examination. An estimate of potential revenue can only be made after these parameters are finalized. The review also includes “an assessment of compatibility with European law” according to the document.