German Internet Giants Face Tax Hike as Culture Minister Pushes for Levy
The German Social Democratic Party (SPD) has expressed support for a proposal by Culture Minister Wolfram Weimer to introduce a tax on major internet companies. According to SPD Chair Saskia Esken, the party has long advocated for these global players to contribute to the public good, as they generate significant profits in the country.
Esken emphasized that the SPD is not only pushing for a tax, but also wants to discuss alternative options. “The revenue from such a tax could be used to support alternative platforms, independently and democratically controlled” she said. The minister has announced plans to draft a bill for a digital tax, citing the Austrian model, where tech giants like Google and Meta have been paying a five percent levy on their ad revenue since 2020. Weimer believes a ten percent tax rate would be more suitable for Germany.
The minister has also criticized the large internet companies for employing tax avoidance strategies. The debate is now centered on whether the expected revenue would be channeled into the state budget or used for the preservation of media diversity.