The European Union needs to tax companies that generate its revenues with digital services as the money is needed to fund infrastructure and social programmes in the future, European Commission vice-president Valdis Dombrovskis said on Monday.

“We need to address the digital taxation, and we need to do it preferably internationally because especially the digital economy is quite globalised,” said Mr Dombrovskis, who also has temporary responsibility for trade, at Austria’s Alpbach economic forum, which he joined online.

“With more digital economy it becomes also more of a challenge for our tax revenues to finance our infrastructure and social programmes,” he added.

– Reuters