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Digital Technology: Taxation

Asked by Euan StainbankLabourTreasuryTabled Answered 10 April 2025UIN 44091

The question

To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the public purse of reducing the headline rate of Digital Services Tax by the end of this Parliament.

Answered by James Murray

The Digital Services Tax (DST) is an interim tax measure to ensure that digital services providers pay UK tax on digital services that reflects the value they derive from UK users.

The UK remains committed to reaching a global solution on the taxation of the digital economy through Pillar 1 of the G20-OECD Inclusive Framework project. It is UK’s intention to repeal our Digital Services Tax (DST) when this international solution is in place.

The OBR’s latest Economic and Fiscal Outlook publication sets out forecasts of Digital Services Tax revenues.

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