Uk says to proceed with digital tax despite us threat

You're referring to the recent development between the UK and the US regarding the UK's plan to introduce a digital services tax (DST).

Here's a brief summary:

Background: The UK government has been considering introducing a digital services tax (DST) to target large technology companies, such as Google, Amazon, Facebook, and Apple, which are accused of not paying their fair share of taxes in the UK. The DST would apply a 2% tax on the value of certain digital services provided to UK customers.

US Threat: In response to the UK's plan, the US government has threatened to impose tariffs on UK goods and services, worth around £7.5 billion, if the DST is implemented. The US has argued that the DST is discriminatory and would harm American businesses.

UK Response: Despite the US threat, the UK government has decided to proceed with the introduction of the DST. In a statement, the UK's Chancellor of the Exchequer, Rishi Sunak, said that the DST is necessary to ensure that large technology companies pay their fair share of taxes in the UK. He also emphasized that the UK is committed to working with the US to resolve the issue through international cooperation.

Next Steps: The UK government plans to introduce the DST in April 2023, with the first tax returns due in April 2024. The US government has also announced that it will continue to engage with the UK to resolve the issue through diplomatic channels.

Implications: The introduction of the DST could have significant implications for American businesses operating in the UK, as well as for UK consumers who use digital services. The US threat of tariffs could also lead to retaliatory measures from the UK, potentially affecting trade between the two countries.

It's worth noting that the DST is not unique to the UK, as other countries, such as France and Italy, have also introduced similar taxes on digital services. The issue highlights the ongoing debate about how to tax digital companies, which often have complex global operations and may not be subject to traditional corporate tax rates.