The following statement can be attributed to Paul Lekas, Senior Vice President, Global Public Policy, the Software & Information Industry Association.
While SIIA is pleased to see the United States and United Kingdom reach a framework for a trade agreement today covering products such as cars, steel, beef, and ethanol, not negotiating an end to the UK’s 2% digital services tax (DST) is a missed opportunity. In a February executive order, President Trump warned that DSTs – like the UK’s – “could cost American companies billions of dollars and that foreign government officials openly admit are designed to plunder American companies.” That is the case in the UK, which raises nearly $1 billion each year from US technology companies through the DST. This siphoning of revenue constrains the potential of US companies to innovate and continue to further US leadership in technology. We hope that as negotiations with the UK continue, the Administration will seek to end this discriminatory tax.
