UK targets tech giants with a digital services tax that would start in 2020

The United Kingdom is targeting the likes of Alphabet and Facebook by introducing a digital services tax that aims to raise about $500 million a year for the government. UK Chancellor of the Exchequer Philip Hammond unveiled the measure in his Autumn Budget. He said it was designed to hit the largest internet businesses, not start-ups. It would affect profitable companies with annual revenues that exceed about $640 million, he said. “We will consult on the detail to make sure we get it right, and to ensure that the UK continues to be the best place to start and scale up a tech business,” he said. “It will come into effect in April 2020.”