Google tax passes first vote hurdle

A TAX on online advertising, nicknamed the Google Tax, has come a step closer after a vote in the Senate.

Senators voted to place a one per cent tax on the cost of online advertising space and a separate measure that could see a 0.5 per cent tax on e-commerce sites like eBay and Amazon.

The combination of taxes could raise €500m a year.

Senator Philippe Marini defended the tax amendment in an interview in Liberation, saying the current situation allowed companies such as Google, which is based in Ireland, to pay hardly any tax in France.

Critics have pointed out that such a tax will not hit the hosts of online publicity, but those who buy it.

The amendment, which does not have the support of the government, will still need to be passed by the National Assembly.