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Digital Technology: Taxation

Question for Treasury

UIN 84239, tabled on 2 September 2020

To ask the Chancellor of the Exchequer, for what reasons two per cent was considered the appropriate level of taxation for the Digital Services Tax.

Answered on

10 September 2020

The Digital Services Tax (DST) is a temporary response to concerns with international corporate tax rules. A 2% DST is considered a proportionate measure for ensuring that digital businesses pay an appropriate level of tax in the UK pending reform of these rules.

Answered by

Treasury