Germany, under the leadership of newly appointed Chancellor Friedrich Merz, is considering a 10% digital tax on major online platforms such as Google and Facebook. The proposed measure is aimed at ensuring that global tech companies contribute more fairly to the German economy.
According to government sources, political leaders have reached a preliminary agreement to introduce this digital services tax, which would target companies generating substantial profits from Germany’s digital landscape while contributing minimally in taxes or local investments.
“These global corporations earn billions from German users, benefiting from the country’s cultural and media environment as well as public infrastructure. Yet, they pay very little in taxes and contribute even less to our society,” said Germany’s Culture Minister Wolfram Weimer in a recent interview.
Germany’s move reflects a growing international trend. Several countries — including India, France, the UK, Italy, Spain, Turkey, Austria, and Canada — have already introduced or are in the process of implementing similar taxes on digital services to level the playing field between foreign tech giants and domestic businesses.
However, the proposed tax could spark diplomatic friction. The previous U.S. administration under President Donald Trump had warned of trade retaliation, including tariffs, against countries imposing digital taxes on American tech firms. While global discussions on fair taxation of digital revenues continue, Germany’s initiative signals a firmer stance from European powers on regulating Big Tech’s economic footprint.
For India, which introduced its own digital services tax (commonly known as the “equalisation levy”) in recent years, Germany’s move adds further momentum to global efforts aimed at ensuring taxation keeps pace with the digital economy.
