Joint Statement Against Discriminatory Digital Taxes

WASHINGTON (Reuters) – Italy and the United States issued a joint statement against “discriminatory” taxes on digital services on Friday, signaling a potential shift away from a tax that has caused tensions with Washington.

The statement was released during Italian Prime Minister Giorgia Meloni’s back-to-back meetings with Donald Trump and his deputy, JD Vance, where Meloni received a warm reception that contrasted with the cooler interactions experienced by other European leaders.

European taxes targeting dominant U.S. tech giants—such as Google (NASDAQ: GOOGL), Facebook (NASDAQ: META), Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN)—have historically agitated U.S. administrations, including Trump’s.

Italy levies a 3% tax on revenue from internet transactions involving digital companies with sales of at least 750 million euros (~$853.35 million), generating less than 500 million euros in state revenue annually.

The joint statement emphasized the need for a non-discriminatory environment in digital services taxation to attract investments from leading tech firms. It followed Meloni’s visit to the White House on Thursday.

While the statement mentioned Trump’s intention to visit Italy soon, it did not clarify whether Rome had agreed to abolish the tax. Despite the limited revenue it generates amidst Italy’s total budget spending exceeding 800 billion euros, the web tax remains a contentious issue for Meloni.

Amid U.S. pressures, members of her ruling coalition demand that she intensify measures against big tech to secure necessary funding for expensive programs, without exacerbating Italy’s fragile public finances, as indicated by political sources.

Economy Minister Giancarlo Giorgetti stated that discussions on big tech taxation with the U.S. should occur bilaterally rather than through the EU, revealing plans to meet Treasury Secretary Scott Bessent at an upcoming G20 gathering.

Additionally, the joint statement welcomed American investments in AI computing and cloud services in Italy, reinforcing its position as a key regional data hub for the Mediterranean and North Africa. Amazon’s cloud computing unit, AWS, announced a 1.2 billion euro investment in Italy over five years, supporting further expansion of its data center operations.

($1 = 0.8789 euros)