The European Commission is to propose a new digital levy to fund its recovery from the pandemic, which will cover hundreds of businesses, according to a report from Reuters.

The majority of the companies covered by the proposed scheme will be European.

Last year, EU countries decided to borrow €750 billion for a covid-19 recovery fund.

The money will be repaid over the next 30 years from new taxes, including levies on the digital economy and carbon emissions.

Talking about the digital levy, Margrethe Vestager, the EU Commission’s executive vice-president, told Reuters: "If we can get this fully endorsed and implemented and tax authorities have the resources actually to claim the taxes, well, then some of the companies which pay very little or nothing in taxes today, they will contribute in the societies where they do their business.”

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