The European Commission is considering a sector-neutral charge on companies generating more than 100 million euros in annual EU revenue, designed to fund the next 2028-2034 multiannual financial framework while sidestepping US tariff threats, as the Trump administration has threatened duties of up to 100 percent on countries imposing digital services taxes. Revenue estimates vary widely, with the European Parliament projecting approximately 25.2 billion euros per year compared to the Commission’s own estimate of 5 billion euros. Unlike a targeted digital services tax, this sector-neutral levy would affect a far broader range of industries including manufacturing, retail, finance and tech. The plan remains under discussion as of October 2026, with no formal proposal tabled yet. Final decisions are anticipated by year-end 2026 alongside the budget negotiations.
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