TECH Signal 399
Campaigners urge Burnham to keep UK tech tax against Trump pressure
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Civil society groups have written to Andy Burnham and John Healey urging the UK to retain its 2% Digital Services Tax on large digital firms and reject US pressure to scrap it ahead of the Prime Minister's meeting with Donald Trump.
Retaining the tax preserves a key revenue stream for public services and signals a refusal to yield to foreign trade pressure, which could affect future fiscal planning and the government's ability to fund public services. It also sets a precedent for how the UK negotiates digital taxation with major trading partners.
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Civil society groups have written to Burnham and Healey urging retention of the 2% Digital Services Tax.
The tax targets revenues from search engines, social media and online marketplaces above £500 million globally.
Scrapping it would forfeit £800 million in annual revenue and weaken the UK's fiscal position.
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The letter marks the first coordinated political push to defend the DST as the UK prepares for high-level talks with the US administration.
Burnham's response will be watched as a test of the government's willingness to prioritize domestic fiscal interests over potential trade retaliation.
The tax's scope includes major multinational platforms such as Amazon, Google, Meta, eBay and TikTok, making its retention a significant factor in the UK's digital economy policy.
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