Page 86 - SAMENA Trends - January 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

off-line. We all have to work together and attending the World Economic Forum. Slim Helù of Mexico, it is co-chaired by
increase our efforts to bring technology Ongoing work of the Commission ITU’s Secretary-General Houlin Zhao and
to the people, in every area and every The Broadband Commission for UNESCO Director-General Audrey Azoulay.
walk of life.” The Broadband Commission Sustainable Development was established It comprises over 50 Commissioners who
launched the ‘Broadband Transforming in 2010 by ITU and UNESCO with the aim represent a cross-cutting group of top
Lives’ campaign at the Davos meeting to of boosting the importance of broadband CEO and industry leaders, senior policy-
mark its 10th Anniversary this year. The on the international policy agenda, and makers and government representatives,
campaign aims to showcase the power of expanding broadband access in every and experts from international agencies,
broadband on all aspects of people’s lives. country as key to accelerating progress academia and organizations concerned
This is the sixth time that the Broadband towards national and international with development. Learn more at: www.
Commission has held a session bringing development targets. Led by President broadbandcommission.org
together a myriad of stakeholders Paul Kagame of Rwanda and Carlos

US Digital Tax Proposal Gets EU Cold Shoulder

Two officials close to the OECD process
are now playing down the prospect of a
breakthrough and raised doubts that any
global compromise would be found before
a final deadline in June. One official went
further, questioning whether Washington
would be willing to compromise in the
summer — only months before U.S.
voters head to the polls in November. The
French Finance Minister Bruno Le Maire
is scheduled to meet Mnuchin on the
margins of the World Economic Forum
in the Swiss Alpine town of Davos. The
Frenchman said that the U.S truce will
help convince Mnuchin to abandon the
American bid to offer companies a safe
haven from the OECD deal. “I believe it’s a
good launching pad,” he said, refusing to
get into further details when questioned
Europe is pressing on with its battle to tax a French peacemaking gesture over its by journalists in Brussels. “Our technical
technology companies despite France’s national tax. After a phone call between teams are in touch day and night to find
truce with the U.S. France, Germany, Italy French President Emmanuel Macron and a solution.” “Our objective was always
and the U.K opposed a U.S plan to water U.S counterpart Donald Trump, Paris said to have a tax fit for the 21st century,” Le
down an international tax on tech giants it would suspend collection of its 3 percent Maire added. “This is an objective that is
by making it optional. Their opposition levy on digital services until global talks shared with the Americans.” Failure to
emerged from behind closed doors in conclude this year. The pause aims to avoid reach an OECD deal this year will reignite
Brussels, where European finance ministers a trade war with the U.S administration, Brussels’ controversial bid to introduce a
discussed the global tax negotiations, which had threatened tariffs of up to 100 tax just for the EU. “If international solution
according to five EU diplomats at the percent on French cheese and Champagne takes time to materialize, the European
meeting. The European Commission unless Paris scrapped its levy. The truce Commission already has proposed … an
also opposes the U.S proposal, which also aims to give space for international EU-wide solution,” Dombrovskis said. That
U.S Treasury Secretary Steven Mnuchin negotiations. Those could be at risk measure appeared dead last year after
put forward in early December. “Tax by in the new EU-U.S dispute. Next week, vetoes from Denmark, Finland, Ireland and
definition is a compulsory payment,” January 29-30, representatives of 135 Sweden. The EU can make tax laws only by
Commission Executive Vice President countries are traveling to Paris in search unanimous agreement. At the time, some
Valdis Dombrovskis told reporters after of agreement on a blueprint for a digital of the proponents said the EU could revisit
gathering. “That’s the approach that tax. The discussions are taking place the idea after giving the OECD process a
we are advocating also in international at the Organization for Economic Co- chance. But EU governments remain at
negotiations.” European frustration at operation and Development, a global odds over a position to take in the global
the American proposal comes despite club of the world’s developed economies. talks.

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