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

Jinse Finance reported that the French National Assembly has passed an amendment to the 2026 budget bill, proposing to increase the digital revenue tax rate for companies such as Amazon, Alphabet (Google's parent company), 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 means a significant rise in this tax. France's move may trigger a strong reaction from Trump, who has repeatedly threatened to impose retaliatory tariffs on France over this measure. US Republican lawmakers have warned that raising the tax rate to 15% would constitute an unwarranted attack on US tech companies and would leave the US Congress and the Trump administration with almost no choice but to take tough retaliatory action. This amendment is only one part of the budget bill, which may be voted on next month or in December, and it is still uncertain whether it will eventually become law. Although the 6% tax rate amendment was proposed by lawmakers from President Macron's party, the French government remains cautious, stating that it will continue to communicate with the parliament. The French Finance Minister said: "We have noted the parliament's desire to strengthen taxation on digital giants. This matter needs to be handled with caution, especially regarding the threshold for raising the tax rate. We must advance this work through European and international dialogue." (Golden Ten Data)