France is set to tax online giants like Amazon, Google and Facebook three per cent of their online revenue, putting pressure on Westminster to follow suit to save suffering UK town centres.
The French government is forging ahead without EU backing after efforts to introduce such a tax across the board failed last year. Most companies which will be hit by the tax are based in the US, and politicians for countries like Germany and Ireland expressed concerns that policy-makers in the States would retaliate.
The tax will apply to online companies with global revenues of more than 750m euros (£644m) and French revenue over 25m euros (£21m).
The big tech tax is expected to bring an extra 500m euros (£430,000) into the country.
Last year, Chancellor Philip Hammond announced a similar tax initiative for digital companies operating in the UK. He said it would be set at two per cent, worth around £400m a year to the country.
The Tory MP blasted the “painfully slow” discussions between countries on how to tackle online companies’ tax avoidance.