The Italian government wants to introduce taxes for large internet companies. The country wants to cancel the planned increase in sales tax.

The tech tax obliges multinational tech companies such as Facebook and Google to pay a 3 percent levy on internet transactions, sources tell Reuters news agency .

This scheme is expected to yield 600 million euros annually, and applies to companies with an annual worldwide turnover of at least 750 million euros.

The plan is broadly in line with the proposal from the Organization for Economic Cooperation (OECD), which last week encouraged European countries to review the rules for taxing global tech giants.

The new scheme will take effect from January. If the European Union succeeds in introducing common rules for a web tax that applies in all Member States, Italy will adjust its own plan, according to the sources.

See also: France introduces techtaks for internet giants. Which countries will follow?