Key facts
- 67% of Britons surveyed believe the UK should increase digital services taxes on multinational technology groups.
- The UK's digital services tax is a 2% levy on revenues of search engine, social media, or marketplace companies with UK sales over £25 million.
- The tax raised approximately £800 million for the UK exchequer in 2024-25.
- U.S. President Donald Trump has threatened to impose tariffs on the UK if it does not drop the tax on U.S. technology companies.
- Three-quarters of the British public prefer to work for or shop with businesses that prove they pay their fair share of tax.
A survey conducted by the Fair Tax Foundation reveals that a significant majority of Britons, 67%, believe the UK government should increase levies on large multinational technology companies to enhance their tax contributions within the country. The UK's digital services tax, implemented in 2020, imposes a 2% charge on the revenues of search engine, social media, and marketplace firms exceeding £25 million in UK sales or £500 million globally. Official figures indicate this tax generated approximately £800 million for the UK treasury in the 2024-25 fiscal year.
Despite its revenue generation, the digital services tax has faced criticism, with some arguing it results in increased fees for consumers. Furthermore, the tax has encountered strong opposition from the United States, with President Donald Trump signaling a potential imposition of significant tariffs on the UK if the tax on American technology companies is not rescinded.
The Fair Tax Foundation's research also highlighted that three-quarters of the British public express a preference for working with or shopping from businesses that can demonstrate responsible tax conduct. Paul Monaghan, the foundation's chief executive, emphasized that 'tax justice' remains a paramount concern for the UK public when evaluating corporate behavior, urging the government to take more robust action to ensure all businesses contribute their fair share of taxes.