'Acting unilaterally could damage competitiveness'

The CBI has responded to the digital taxation proposals announced by the European Commission.

Rain Newton-Smith, CBI Chief Economist, said:

“The European Commission proposals on taxation of the digital economy are out of step with wider discussions on multilateral tax reform, particularly the proposed interim measure to tax some of the revenue streams of digital business models.

“Acting unilaterally, whether through the UK or the EU, could damage competitiveness while discouraging further investment and innovation, which are vital for productivity growth.

“An international solution, designed through the Organisation for Economic Co-operation and Development, represents the best response to the tax challenges arising from the digitalisation of the global economy.”