A prominent European Parliament member said Tuesday that a proposed digital tax at the European Union level could generate up to 25.2 billion euros annually to fund the bloc's next long-term budget, according to Euronews.
Danuše Nerudová, a notable member of the European Parliament, outlined the estimate, which exceeds by five times the figure previously calculated by the European Commission. The parliament conducted an assessment of expected revenue from proposed European taxes on digital services and cryptocurrency assets.
The parliament's estimates rely on a broader tax base than the one used by the European Commission. The proposed digital tax would cover streaming services and data processing, alongside advertising and intermediation services. The parliament also recommended raising the tax rate from 3 percent to 5 percent.
The proposal comes as EU member states intensify negotiations to reach an agreement on the next multiannual financial framework by year-end. The negotiations aim to establish the bloc's budget structure for the coming years.
Nerudová noted that some member states have expressed reservations about the digital tax due to geopolitical concerns, particularly the possibility of retaliatory trade measures from the United States.