The EU is planning to propose its own digital tax on Internet giants if no agreement is reached on a global level for updating taxation rules in the digital era, said EU President Ursula von der Leyen in her speech on the State of the Union at the European Parliament Plenary. She also stated that Europe will push for an agreement in the framework of the Organisation for Economic Co-operation and Development (OECD) and the G20, but failure in negotiations will see the EU going for its own proposal on digital tax on tech companies at the end of the year.

So far, the OECD has been working on a proposed international agreement to address the tax challenges of the digitalised economy. 140 countries have been discussing a rewrite of global tax rules to bring them in line with the digital age.