Germany’s new digital ministry has stipulated that any potential levy on major online platforms must be internationally coordinated and must not result in higher prices for consumers. This statement, issued Friday, suggests possible divisions within the German government regarding proposals for such a digital tax.
The clarification follows comments made by Minister of State for Culture Wolfram Weimer in an interview published Thursday. Weimer indicated that officials were actively working on a levy targeting tech giants like Alphabet’s Google and Meta’s Facebook, suggesting a 10% rate would be “reasonable.” However, he did not specify whether this would apply to revenue or profit.
However, the digital ministry’s spokesperson emphasized several crucial conditions for evaluating such a tax. “The decisive factors… are that it is designed in a targeted manner, is internationally coordinated and compatible with EU law, that any potential revenue benefits Germany as a hub for innovation, and that ultimately no higher prices are passed on to end consumers,” the spokesperson stated.
While Germany’s ruling coalition parties had agreed earlier this year to consider introducing a digital services levy, the project was not included in the government’s list of prioritized initiatives. Officials also clarified that Weimer’s specific proposal had not yet secured a government-wide agreement.
This discussion arises as Chancellor Friedrich Merz is reportedly expected to travel to Washington soon for a meeting with U.S. President Donald Trump. However, the trip has not been officially confirmed. President Trump has historically opposed efforts by foreign governments to tax American tech companies, arguing it would “appropriate America’s tax base.”
Industry association Bitkom has voiced concerns, warning that such a levy could lead to price increases affecting businesses, public administrations, and individual consumers. Bitkom President Ralf Wintergerst argued, “These price increases will hinder and slow down the urgently needed acceleration of the digitalization of public services and the digital transformation of companies.” He added, “What we need is not more, but fewer financial burdens on digital goods and services.”
