UK Public Pushes for Higher Digital Services Tax on Big Tech
Survey Reveals Strong Majority Back Higher Levies on Meta, Google and Amazon
The Fair Tax Foundation released a poll of roughly 2,000 UK adults indicating that 67% believe the government should increase the digital services tax on multinational technology groups to boost their overall UK tax contribution.
Respondents specifically cited companies such as Meta, Google and Amazon as targets for higher levies.
Digital Services Tax Revenue and Public Support Metrics
- 2% tax on revenues of search‑engine, social‑media or marketplace firms with UK sales over £25 million (or £500 million globally).
- Revenue generated in FY 2024‑25: approximately £800 million.
- Public backing: 67% in 2026, up from 69% in 2025; over the past decade, never less than 70% have favoured working for or buying from a “fair‑tax” company.
Implications for UK Fiscal Policy and the Tech Industry
The findings put pressure on policymakers to consider expanding the scope of the digital services tax beyond the current handful of firms. Critics argue the levy could raise consumer prices, while supporters view it as a tool for tax justice and a way to address perceived under‑taxation of high‑margin digital services.
US officials have already signalled possible retaliation, with former President Donald Trump threatening a “big tariff” on the UK if the tax is not rolled back for US‑based tech firms.
Potential Trajectory of Tax Reform and Corporate Responses
If the government acts on the poll’s signal, we may see:
- Broadening of the digital services tax to include additional platforms and lower revenue thresholds.
- Negotiations with the US and EU to mitigate trade‑related fallout.
- Corporate adjustments such as increased compliance costs, potential price adjustments for UK consumers, or lobbying for alternative tax frameworks.
Conversely, a decision to maintain the status quo could fuel further public dissatisfaction and amplify calls for a more comprehensive corporate‑tax overhaul.