-France may further delay introducing Google tax

Internet Business News
05-25-2011
-France may further delay introducing Google tax

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

25 May 2011 - French Digital Economy Minister Eric Besson said yesterday for TV channel Canal+ that the introduction of a tax on Internet advertising may be postponed again.
The new rules had to enter into force in July 2011. Initially, the government wanted to impose the new tax from January.

The minister's statement came in response to a proposal by an MP from the ruling party UMP for suspension of the project for a 1% tax on online ad spending, known as the "Google tax", which will affect mostly US Internet search corporation Google (NASDAQ:GOOG).

The tax is a controversial issue as it will bring some EUR25m (USD35m) to the French state, but the receipts from value added tax (VAT) will decline.

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