Tax on Google? To fund nation’s IT trade, Russia mulls new levy on international web giants that use residents’ knowledge to promote advertisements

Russia’s largest web corporations are teaming up with the nation’s authorities to introduce a brand new tax to hit the pockets of their worldwide rivals and funnel money straight into the home market.

Representatives from Russian tech giants final week met with Deputy Prime Minister Dmitry Chernyshenko to assist plan a levy on international web giants that use residents’ personal knowledge to promote focused commercials.

If it goes forward, will probably be one other tax on high of the so-called ‘Google Tax’, handed in 2016, to focus on corporations offering e-services, corresponding to promoting purposes or video video games with out a bodily retailer. This VAT brings the funds about 50 billion rubles ($ 67 million) a yr.

In latest months, Russian authorities have taken intention at international social networks, with President Vladimir Putin slamming them for attempting to make revenue with out look after whether or not content material “causes hurt.”

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Based on Moscow each day Vedomosti, representatives from the most important Russian web giants, corresponding to Yandex and Mail.ru, met with Chernyshenko to debate additional tariffs on their worldwide competitors.

The proposed levy would goal international web corporations like Google and Twitter, each of which use private knowledge to push focused promotions. Commercials are the first money-spinner for many on-line companies. For instance, within the third quarter of 2020 alone, YouTube revamped $ 5 billion in promoting income.

“The brand new tax is a measure that’s a part of the second bundle of measures to help the trade. Its codename is the ‘Digital Tax,’” mentioned one of many contributors, chatting with Vedomosti. “It’s presupposed to cost a further charge to an organization that makes use of the info of Russians to type promoting coverage.”

For instance, the Vedomosti supply famous that social networks usually analyze person conduct for contextual promoting.

If the tax goes forward, the funds will likely be directed to help the home IT trade.

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In latest weeks, some Russian politicians have known as for international platforms corresponding to Fb, Twitter, and Instagram to be blocked, with some accusing them of permitting unlawful content material, corresponding to calls to hitch unsanctioned protests.

Senator Alexey Pushkov, an influential politician, famous his perception that it’s mandatory “to strengthen Russian laws with a purpose to cease using social networks mobilizing residents for unlawful actions.”

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