Market News: France Raises Digital Tax Rate for Companies like Amazon and Google Parent Company from 3% to 6%

Reported by Jinse Finance, the French National Assembly has passed an amendment to the 2026 budget plan, proposing to increase the digital revenue tax rate for companies such as Amazon, Google parent company Alphabet, and Meta from the current 3% to 6%. Although this increase is lower than another proposal to raise the tax rate to 15%, it still signifies a significant rise in taxation. France's move may provoke a strong reaction from Trump, who has repeatedly threatened retaliatory tariffs against France over such measures. U.S. Republican lawmakers have warned that raising the tax rate to 15% would constitute an unwarranted attack on American tech companies and leave the U.S. Congress and the Trump administration with almost no choice but to take tough retaliatory actions. This amendment is only part of the budget plan, and the bill may be voted on next month or in December, with its final status as law still uncertain. Despite the 6% tax rate amendment being proposed by lawmakers from President Macron's party, the French government remains cautious, stating that it will continue to maintain communication with the parliament. French Finance Minister said: "We have noted the parliament's intention to strengthen taxation on digital giants. This matter requires careful handling, especially regarding the threshold for raising tax rates. We must advance related work through European-level and international dialogue." (Jin10)