New Zealand plans new tax for giants like Google, Facebook
WELLINGTON, New Zealand (AP) — New Zealand's government plans a new tax targeting online giants like Google and Facebook that earn plenty of money in the country but pay little tax.
Prime Minister Jacinda Ardern said there's a gap that needs to be closed.
"Our current tax system is not fair in the way that it treats individual taxpayers and the way that it treats multinationals," she said. "It's not fair."
She said the proposed digital services tax would tax multinational online companies at about 2 or 3 percent on the revenue they generate in New Zealand, a rate that is in line with other countries considering similar taxes.