Italy's Stance on Web Tax

Deputy Economy Minister Maurizio Leo announced on Tuesday that Italy is prepared to engage in discussions with the incoming Trump administration to prevent any potential U.S. retaliation against Rome's domestic web tax.

The U.S. has recently intensified its calls for Italy to repeal the levy, viewing it as unfairly discriminatory as it primarily targets major U.S. tech companies like Meta Platforms, Google, and Amazon.

The Web Tax's Impact

Introduced in 2019, Italy's 3% levy on internet transaction revenue applies to digital companies with annual sales of at least 750 million euros, provided they generate a minimum of 5.5 million euros within Italy.

As part of the 2025 budget bill, the Treasury attempted to remove these thresholds for the tax to be applied, a move critics argued would negatively impact smaller companies. However, following disputes with the co-ruling Forza Italia party, the government plans to reinstate the 750 million euro revenue floor.

Economy Minister's Perspective

Economy Minister Giancarlo Giorgetti previously stated that broadening the scope of Italy's web tax to include smaller firms could have helped the government avoid conflicts with the United States.