France Might Put Internet Tax on Personal Data Sharing by Tech Companies

Posted on Jan 26 2013 - 10:21pm by Sidrah Zaheer

personal data sharing onlineMany governments have taken controversial and much criticised steps toward internet and its activities. Now, France has joined the list of those who will take the heat and fire for “internet tax” that it wants to impose on data collection activities by Facebook, Google and other technology companies. Technology companies and online businesses are known to use personal information and data of users for their own advertising campaigns and target marketing. Now taking such data for advertisement is being proposed as taxable.

The outside observers will measure the amount of data being used by technology companies and will place taxes on them accordingly. It is said that personal data of users is of utmost importance to technology companies whose main marketing campaign works online and who earn through online sources. Facebook and Google, amongst others, are working to provide such personal data, but all for free. The only thing they get in exchange are the services these companies provide.

If this French law comes into force, technology companies based in France might get a relief in their tough competition from American based companies who dominate them, but get away from paying taxes. Google has been blamed for tax evasion, whereas the company spokesperson obviously denies any such charges against its practices.

Google operates in Pakistan, but it does not get taxed here. The government of Pakistan is trying to find means to tax it as the company has no official representation in the country, but earns billions of dollars in profits annually from its 20 million internet user-base. This French law, even though not pleasant for technology companies, will surely be a better move to keep in line the practices of some American technology companies.

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