Italy cancels 'Google tax' on web companies


  • World
  • Friday, 28 Feb 2014

Italy's Prime Minister Matteo Renzi talks with State Secretary to the Prime Minister Graziano Delrio (R) during a confidence vote at the lower house of the parliament in Rome February 25, 2014. REUTERS/Giampiero Sposito

ROME (Reuters) - Italy has dropped a planned internet tax sometimes dubbed the "Google tax", in one of the first measures enacted by the new government of Matteo Renzi, an official said on Friday.

The former government of Enrico Letta passed a law on the tax last year, but promptly delayed the date it would come into effect until July. The European Commission warned that it could break EU rules before it was approved in parliament.

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