France may suspend digital tax

A government source in Paris said France is willing to suspend collection of its tax on giant internet firms until the end of the year.

The offer comes after what French President Emmanuel Macron said on Monday was a `great discussion’ with his U.S. counterpart Donald Trump about taxing digital services.

The U.S., home to many of the internet giants affected by a French tax that came into force in 2019, had threatened to retaliate with tariffs on French products including champagne and cheese.

France had already promised to repay any payments made under the tax if an international digital services tax regime was agreed in ongoing talks at the Organisation for Economic Cooperation and Development (OECD).