UK Could Raise £5 Billion From Digital Tax, Think Tank Says

The UK government shouldn’t drop its digital services tax on tech companies as it would generate up to £5.2 billion ($7 billion) by the end of the current Parliament, according to a tax policy think tank.

DSTs could be the UK’s “primary de facto solution” to taxing digital giants, at a time when international efforts to arrive at a consensus on digital taxation remain deadlocked, TaxWatch said in a report Thursday.

The UK imposes a 2% tax on revenue generated by tech companies with global revenue above £500 million and local revenue of £25 million. The levy applies to revenue ...