Like most of the European countries Italy is suffering from an economic slowdown with their excessive debts. Rome has been struggling to cope up with the pressure on it due to mounting debts. Italy approved a new web tax on digital companies, including U.S. tech giants, as part of its 2020 draft budget . This is considered by experts as a major blow to Google ,Amazon and Facebook which has a major presence in the country.

 Italy  may impose a 3% levy on internet transactions on major tech companies like Google and Facebook. This move from the country’s side is to find financial resources to avoid a sales tax worth around €23 billion. The country has twice risked sanctions for its excessive debt.

Many European countries including Italy were having endless discussions regarding imposition of web tax on digital companies for quite sometime . But due to the protest from the companies especially Facebook and Google the countries couldn’t impose it earlier. Even Washington had protested against it. Washington has repeatedly said the levy is unfairly targeted on U.S. firms. A senior U.S. official said President Donald Trump will take up the issue seriously when he meets Italian President Sergio Mattarella in Washington.

The digital companies are making huge profit in European countries and they do away with paying very less tax. Now the countries are taking the stand of extracting tax from them . Ireland is one such country with a very low profile tax jurisdiction.

 “Profits have to be taxed where they are made,” according to Italy’s Economy Minister Roberto Gualtieri. The Italian web tax will be applied to companies with annual revenues worth at least €750 million and digital services exceeding 5.5 million. The Treasury has forecasted that in December the web tax would yield €600 million in revenues from 2020.

Italy’s plan is broadly in line with proposals from the OECD, which last week urged governments to redraw rules for taxing global giants. But the EU has so far failed to agree as a bloc on how to tax the firms. France and U.S had already reached an agreement over a French tax on Tech companies.