Claims that the SNP face Budget 'dilemma' over widening tax gap

Chancellor of the Exchequer Philip Hammond prepares his speech in his office in Downing Street London ahead of his 2018 Budget announcement on Monday. PRESS ASSOCIATION

Chancellor of the Exchequer Philip Hammond prepares his speech in his office in Downing Street London ahead of his 2018 Budget announcement on Monday. PRESS ASSOCIATION

Revealing the tax in Parliament, Hammond said that it will be "carefully created to ensure it is established tech giants - rather than our tech start-ups - that shoulder the burden of this new tax". The digital services tax will be paid by companies that are profitable, he said, and making at least £500 million ($640 million) per year in global revenues.

Digital tech giants such as Google, Facebook and Amazon face a new levy from the British government after Chancellor Philip Hammond revealed that he was introducing a UK Digital Services tax.

Britain had been leading attempts to reform worldwide corporate tax systems, Hammond said, but progress had been painfully slow and governments could not simply talk forever.

It won't be until the tax year 2022-23 that it will raise the £400 million mentioned by Chancellor Philip Hammond in today's budget, and £440 million the year after, according to the OBR's forecasts.

Facebook earlier this month said its British tax bill tripled to £15.8 million previous year compared with 5.1 million pounds in 2016.

'So we will now introduce a UK Digital Services Tax.

Hammond said the UK Government would continue to take part in conversations to create a global solution and would replace the digital services tax with a world-wide tax if and when one is agreed upon.




Carolyn Fairbairn, director-general of the CBI, said on Monday the new tax was a "high risk" move.

Finally, on a practical level, a digital services tax may well be hard to implement, and would add another layer of complexity to our already unruly tax code.

But campaign group FairFuelUK says United Kingdom drivers still pay among the highest fuel tax rates in the world and is calling for levies to be cut. We promised to do so and we have done it.' Experts had feared Mr Hammond would be forced to renege on his promise to increase income tax thresholds in a bid to cover the cost of the £20billion funding pledge to the NHS.

He was quick to point out this tax was not an online sales tax on goods bought online which he said would impact consumers.

Nicola Sturgeon has been urged to rule out further tax rises after the Budget left her facing a "dilemma" over the widening tax gap between Scotland and the rest of the UK.

"The new tax isn't even set to be implemented until 2020, at which time the tech giants will start to enjoy a 2% cut in their corporation tax rate". And we'll only get £400m from them. FSB was credited in the speech for our campaign on this, stopping an over-reach which would have created a mountain of bureaucracy and a tax-hike for more than a million businesses.

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