WELLINGTON, New Zealand | New Zealand plans new tax for giants like Google, Facebook

WELLINGTON, New Zealand (AP) — New Zealand’s government has announced plans for a new tax targeting online giants like Google and Facebook that earn plenty of money in the country but pay little tax.

Prime Minister Jacinda Ardern said Monday the current tax system isn’t fair and there is a gap that needs to be closed.

She said the proposed digital services tax would tax multinational online companies at about 2 or 3 percent on the revenue they generate in New Zealand. She said the rate is in line with other countries considering similar taxes.

Revenue Minister Stuart Nash said the tax could be implemented next year. He said New Zealand will continue working with the Organization For Economic Cooperation and Development to find an international solution to the problems of taxing big online companies.

By Associated Press