The European Commission is evaluating a new sector-neutral levy on large corporations to bolster the EU budget for the 2028–2034 period. The proposed charge would apply to any company generating annual revenue within the European Union exceeding €100 million, regardless of its industry.
This initiative aims to replace targeted digital services taxes, which have drawn threats of up to 100% tariffs from the US administration. By moving away from industry-specific levies, Brussels hopes to avoid trade conflicts while securing stable revenue streams for its seven-year financial framework.
Estimates for potential tax revenue vary significantly. While the Commission projects €5 billion annually, the European Parliament suggests that broader digital taxes, potentially including crypto-assets and online gambling, could yield €25.2 billion per year, totaling €175 billion over the budget cycle.
No formal proposal has been submitted as of October 7, 2026. Member states remain cautious due to potential US retaliation and the risk of economic backlash. A final decision on the implementation of these measures is expected by the end of 2026.
