Australia, Beware: US Considers Retaliation Against Digital Taxes

WASHINGTON: The US is investigating digital services taxes now being adopted or considered by Britain, Italy, Brazil and other countries, including Australia.

The move could lead to new punitive tariffs and heighten trade tensions. Taxes against US digital giants are seen by several countries as a way to raise revenue from the local operations of US companies, including Google and Facebook.

US officials, however, say they are prepared to take all appropriate action to defend American businesses and workers against what they called discrimination.

The Internet Association trade group said the probe is needed, since a growing number of countries had proposed or enacted digital taxes, despite OECD negotiations.