EU Digital Tax Could Raise €37.5 Billion, Study Finds

A 5% digital services tax across the European Union could raise up to 37.5 billion euros ($40.5 billion), according to a study published by the Centre for European Policy Studies.

The study, sponsored by the Greens/European Free Alliance group in the European Parliament, said the proposed DST had potential “to provide a substantial source of revenue for the EU at a time of heightened fiscal pressure,” according to a Tuesday press release.

European policy makers can also consider alternatives including a digital permanent establishment tax, a destination-based cash-flow tax, and expanding VAT on digital transactions, the study added.

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