Following the United Kingdom’s plan to impose a new tax on sales by many technology companies, U.S. business groups, including USCIB, fired back warning that the proposal would violate tax agreements by targeting U.S. firms. The proposal includes a 2% tax on sales by large social media platforms, internet marketplaces and search engines from April 2020.
BBC reported on this development and highlighted comments by U.S. Treasury Secretary Steven Mnuchin, who according to BBC, voiced strong concern about different countries’ efforts to develop digital sales tax. “This tax is a proportionate and targeted interim response that reflects the changing global economy, and how digital businesses derive value from users – it’s not targeted at any country and seeks to ensure the tax system is fair,” said Mnuchin.
USCIB submitted a letter to EU Commissioner Pierre Moscovici in July in response to a proposed EU directive urging the directive not to be adopted.
“The directives reflect a lack of understanding of current and evolving business models and would distort the allocation of revenue or income to functions that do not accurately reflect value creation by the companies earning the revenue or income,” stated USCIB’s letter.
“USCIB supports a consensus-based comprehensive income-tax-based solution applied equally to agreed upon issues in segments of the digitalized economy,” added USCIB Vice President for Tax Policy Carol Doran Klein. “There is agreement that the global economy, businesses and the public sector are digitalizing. Therefore, any solution to agreed upon issues (if any) must apply to the economy broadly, not to narrow segments of the economy. Any solution must also be broadly agreed to by countries to minimize double taxation and controversy, therefore the G20-OECD Inclusive framework is the best forum for this discussion. The EU itself recognizes the importance of a multilateral approach.”
ICANN 63’s Annual General Meeting (AGM) wrapped up on October 25 in Barcelona, Spain, marking the 20th anniversary of ICANN. The AGM brought together roughly 3,000 participants from business, government, civil society, and the technical community from across the world to focus on policy priorities for the domain name system (DNS).
Digital technologies and the online environment enabled by them present unprecedented opportunity to raise productivity and generate economic growth.
FT featured a letter by USCIB CEO and President Peter Robinson in response to an editorial “The web should be open to all the world’s citizens” on October 11.


On July 31 and August 1, USCIB teamed up with the U.S. Chamber of Commerce to host the second in a series of meetings tied to e-commerce and the work being undertaken by the World Customs Organization (WCO). Dubbed “Industry Days,” these meetings included robust participation from both private sector and public sector representatives from multiple U.S. government agencies aimed at continuing the established dialogue on the WCO’s E-Commerce Framework of Standards (FoS). Last week’s meetings were conducted in a small group fashion, which were stakeholder specific (i.e., carriers, customs brokers, e-payment, marketplaces and vendors).