ITI Worries About ‘Accelerating Trend’ in DST Adoption in More Countries

France’s digital services tax (see 1912030002) sets a “troubling precedent” because the DST “unnecessarily departs from progress towards stable, long lasting international income tax policies,” and “disproportionately impacts U.S.-headquartered companies.” So testified Sam Rizzo, Information Technology Industry Council director-policy, before an Office of the U.S. Trade Representative hearing Tuesday on Trade Act Section 301, per a transcript released Friday. The tech industry worries about “an accelerating trend toward the unilateral adoption of DSTs” in other countries, said Rizzo. U.S. “policy responses” need to be “about more” than the French DST, he said. “It is about preventing the wide-scale application of targeted, unilateral taxes.” USTR proposed retaliatory tariffs of up to 100 percent on some French non-tech imports.