Rome/Washinhton: Italy and the United States issued a joint statement on Friday denouncing “discriminatory” taxes targeting digital services, suggesting that Rome may be reconsidering a levy that has long strained relations with Washington.
The announcement came following Italian Prime Minister Giorgia Meloni’s high-profile meetings with US President Donald Trump and Vice President JD Vance. Meloni received a notably warm reception from Trump, a marked contrast to his more guarded interactions with other European leaders.
The longstanding point of contention centers on European digital taxes aimed at major American tech firms including Alphabet (Google), Meta (Facebook), Apple, and Amazon. These levies have drawn repeated criticism from successive US administrations, including Trump’s, for what they consider unfair targeting of US companies.
Italy currently imposes a 3% tax on revenue from digital services for companies generating at least €750 million globally, and at least €5.5 million from Italian users. Despite its limited fiscal impact—bringing in less than €500 million annually—Washington views the tax as a discriminatory measure against American technology giants.
“We agreed that a non-discriminatory environment in terms of digital services taxation is necessary to enable investments from cutting-edge tech companies,” the joint statement from Rome and Washington read, following Meloni’s visit to the White House.
The statement also noted that President Trump plans to make an official visit to Italy in the near future. However, it stopped short of confirming whether Italy would abolish its digital tax altogether.
Although the web tax generates only modest revenue compared to Italy’s €800 billion national budget, the issue remains politically sensitive. While Meloni faces diplomatic pressure from the US to reconsider the measure, members of her governing coalition are urging her to maintain or even strengthen the tax to help finance major spending initiatives without worsening the country’s already strained public finances.
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Political insiders suggest that striking a balance between maintaining strong transatlantic ties and securing domestic fiscal goals remains a central challenge for Meloni.
Italian Economy Minister Giancarlo Giorgetti emphasized that ongoing discussions with the US regarding digital taxation should take place on a bilateral basis rather than through the European Union. He confirmed plans to meet with US Treasury Secretary Scott Bessent at an upcoming G20 summit.
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The joint statement also welcomed expanding American investments in Italy’s tech infrastructure, particularly in artificial intelligence and cloud computing. It underscored support for Italy’s ambition to become a regional data hub for the Mediterranean and North Africa.
Amazon Web Services (AWS) previously announced a €1.2 billion investment plan over five years to expand its data center operations in Italy, marking a significant move to bolster the country’s digital economy.
