The government expects the Joe Biden administration to review Donald Trump’s stance on countering India’s digital service tax, which is levied on companies such as Google and Netflix. “They may not be able to do it by January 20 and we expect things to change after that,” said a government source. Companies hit by the levies have been lobbying in Washington, DC for retaliatory action against countries ranging from Austria to India and France. An agency report said the US will soon issue the results of probes into Austria, Italy and India’s decisions to tax local revenue of internet companies such as Facebook, which could pave the way for retaliatory tariffs, people familiar with the situation said. Determinations on the three countries are due because all of them have instituted the so-called digital services taxes — or levies on local sales of companies such as Alphabet’s Google — this year, said the people who couldn’t be identified because the information is private. There may also be findings on Indonesia, the UK and Turkey, one of the people said. The US Trade Representative in June started investigations into the moves of at least 10 countries, citing section 301 of the US Trade Act of 1974, which allows it to retaliate for trade practices it deems unfair. It’s the same tool used to justify US tariffs on Chinese goods for alleged theft of intellectual property.
Source : The Times of India
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