Plans for a potential digital levy on large corporations remain largely undefined, according to a response from the German federal government to a parliamentary inquiry by the Green party, as reported by the news magazine “Stern”. The government is currently exploring “different configurations” for a possible levy on online platforms.
Previous statements made by State Minister for Culture Wolfram Weimer regarding the proposed rate, the selection of affected platforms and the intended use of funds have been described as lacking substance by Misbah Khan, Deputy Parliamentary Group Leader of the Green party. “Apparently, the platform levy envisioned by State Minister Weimer currently extends only to a non-binding examination mandate” Khan stated, adding that governmental action requires more than headlines and media appearances.
Details regarding the specific scope of the examination mandate outlined in the governing coalition agreement remain unclear. The response from State Minister Weimer does not specify which platforms would potentially be affected. When asked to define “online platforms” and which business models of digital corporations this would include, Weimer referred to the ongoing examination. “A final definition of the term `online platform` in the context of the examination mandate is therefore not currently available.
State Minister Weimer previously indicated a potential levy rate of ten percent would be “moderate and legitimate” a statement not reinforced in the government’s response. The rate, alongside whether the levy would be implemented through taxation or a special fiscal assessment, the basis for calculation, potential thresholds and possible impacts on the German economy, are all part of the ongoing examination. An estimate of potential revenue can only be made after these parameters are defined. The examination also includes an assessment of compatibility with European law, according to the document.
