Germany is working on a plan to introduce a 10% tax on major online companies such as Google and Facebook.
The country’s new culture minister revealed this in an interview, explaining that the government wants these tech giants to contribute more to Germany’s economy.
The proposed tax is aimed at companies earning huge profits in Germany without paying what the government believes is a fair share.
The idea comes at a time when Chancellor Friedrich Merz is preparing for a possible visit to Washington to meet with U.S. President Donald Trump, although no official date has been set.
This move may increase tensions with the U.S., as Trump has previously opposed foreign governments taxing American companies, accusing them of unfairly targeting U.S. firms.
Germany’s culture ministry is drafting a bill that would target online platforms making big money within the country.
The minister accused these companies of finding ways to avoid taxes, despite using Germany’s infrastructure and benefiting from its creative industries.
He said these firms earn billions in Germany but give very little back.
While the government is preparing the bill, it is also reaching out to the tech companies for discussions.
The idea of voluntary payments was mentioned, but there are concerns that such efforts might not be enough.
So far, Alphabet (Google’s parent company) and Meta (Facebook’s parent company) have not made any public comments on the matter.
