July 12, 2021

The European Commission is expected to delay the implementation of its plan for a digital levy until the fall in order to improve the chances of global corporate tax reform.

The Financial Times reported on Sunday that the European Commission is under pressure from U.S. Treasury Secretary Janet Yellen to shelve its digital tax proposal.

The digital levy would help finance Europe’s road to recovery from the pandemic and would apply to several companies in the digital economy.

While officials stressed that the final decision had not yet been made and would still be discussed when Commission President Ursula von der Leyen meets Yellen, the unidentified official said: “The commission is reflecting on how to support the historic G20 deal. In that context we are considering a possible postponement to the autumn of the detailed proposal on the digital tax.”

For more information, read the original story in Reuters.