Washington has once again called on Italy to abolish a digital tax deemed unfair and discriminatory, primarily impacting US tech companies such as Meta Platforms, Google, and Amazon.
Leo stated, "We will need to engage in dialogue about the tax with the Trump administration," during parliamentary discussions.
In 2019, Rome introduced a 3% levy on revenues from internet transactions for digital companies with annual earnings of at least €750 million ($786 million), provided they generate at least €5.5 million in Italy.
As part of the 2025 budget proposal, the Finance Ministry attempted to eliminate the thresholds for the tax's application, a move critics argued would have harmed smaller businesses.
However, following disputes with the coalition partner Forza Italia, the government is now prepared to reinstate the €750 million threshold.
Economics Minister Giancarlo Giorgetti indicated that extending the Italian digital tax to smaller companies could have helped the government avoid conflicts with the United States.