US claims Austria, Spain, UK digital taxes discriminate

Washington, Jan 15 : The US Trade Representative (USTR)’s Office has claimed that digital service taxes (DSTs) adopted by Austria, Spain and the UK discriminate against American companies and are inconsistent with the prevailing principles of international taxation.
“USTR is not taking any specific actions in connection with the findings at this time but will continue to evaluate all available options,” the Office said in a statement on Thursday after releasing findings of its Section 301 investigations into DSTs.
“The best outcome would be for countries to come together to find a solution,” Xinhua news agency quoted outgoing USTR Robert Lighthizer as saying in the statement.
The move came after the US last week decided to suspend proposed tariffs on about $1.3 billion worth of French products amid the DST dispute.
“A suspension of the tariff action in the France DST investigation will promote a coordinated response in all of the ongoing DST investigations,” said the USTR’s Office.
The USTR’s Office also claimed last week that DSTs adopted by India, Italy and Turkey discriminate against American companies without taking any tariff actions.