An Irish MEP has voiced concerns over proposals for the European Commission to introduce a new digital tax.
Under the proposal digital companies based in the European Union will pay a new levy on online revenues.
Fine Gael MEP Brian Hayes has been critical of the way European Commissioner for Taxation, Pierre Moscovici, who claims the new system could bring in up to €5b in tax, has handled the initiative.
Taoiseach Leo Varadkar has said that global solutions to the issue are needed.
The proposal could have a huge impact on small countries like Ireland, which is currently used as a base for multinational firms such as Google, Facebook and Apple because of its business friendly tax rates.
The proposal will apply a three percent levy on the largest digital companies, many of which are American.
Mr Hayes is concerned that the move may be seen as “anti- American.”
He also believes the plans is simply a raid on the Irish tax system.
“What I resent is the attempt to simply raid our taxes under the guise of “tax justice”,” he wrote in the Sunday Independent.
“This is nothing to do with justice but everything to do with tax transfers from small members states and sending messages to the US.
“This is an international problem, as digital services are provided on a global basis and that’s where the issue should be fixed.”
He said any new system could cause problems for Ireland.
“Were we to lose €1b or €2b, who would make up the difference?
“We would see reduced public services for an increase in other forms of tax.
“The last thing that Ireland needs now is tax uncertainty."
