Poland Forges Ahead with Digital Tax Plan Amid Trump’s Threats

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Local sources from Poland: Business Insider Polska, Money.pl.
UK coverage: politico.eu.

Poland is steadfast in its commitment to implement a 3 percent digital tax on large tech companies, despite facing criticism and threats from former U.S. President Donald Trump. The tax, targeting firms with global revenues exceeding €750 million, is poised to predominantly affect U.S. tech giants such as Google, Meta, and Amazon. Trump has lambasted the move as discriminatory against American technology firms and has hinted at retaliatory measures including tariffs and restrictions on access to U.S. technology and chips. However, Poland’s Ministry of Digital Affairs, under the leadership of Minister Krzysztof Gawkowski, maintains that the tax is designed to ensure equitable contributions from all significant players in the digital market, irrespective of their origin. The initiative aims to bolster Poland’s budget by over 1.7 billion PLN in 2027, with the revenue earmarked for supporting Polish technology and media content development. The proposed tax has sparked a debate over its potential impact on international relations, particularly in light of Trump’s threats, which have historically signaled a penchant for trade wars. The European Union has responded to Trump’s warnings by reasserting its sovereign right to regulate economic activities within its territory, emphasizing the importance of democratic values in shaping policies such as the Digital Services Act (DSA) and the Digital Markets Act (DMA). These regulations are aimed at ensuring a competitive market and do not specifically target American companies. As Poland moves forward with its digital tax plan, the global community watches closely, awaiting the outcomes of this bold stance against a backdrop of geopolitical tensions and the ongoing discourse on fair taxation in the digital era.