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France Approves Tax on Tech Giants Despite Threats From Trump Administration

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France taxes tech giants

France has approved a digital services tax despite threats of retaliation by the US, which argues that it unfairly targets American tech giants.

The 3% tax will be levied on sales generated in France by multinational firms like Google and Facebook.

The French government has argued that such firms headquartered outside the country pay little or no tax.

The US administration has ordered an inquiry into the move - which could result in retaliatory tariffs.

The new tax was approved by the French senate on Thursday, a week after it was passed by the lower house, the National Assembly.

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