The plan is to take two percent of revenues from the biggest companies that operate online, with any potential tax-skim designed only to hit companies that (a) turn a profit and (b) take in more than £500m each year in global revenues.
"Given the dominance of the US tech giants, it is hard to see the Trump administration taking kindly to the digital sales tax as the United Kingdom sets out its stall for the best possible trade deal with the US", Dan Neidle, a tax partner at law firm Clifford Chance told the BBC. They're not investing, they're sitting on £700bn of uninvested income not invested.
"The issue for us is having a fair taxation system".
But his stance provoked disquiet from other party figures.
The Chancellor suggested that a Brexit deal could trigger more tax cuts and increased public service spending. This is wrong. I can not support it'.
Meanwhile, Tottenham MP and ex-culture minister David Lammy said: "We should not be supporting tax cuts that disproportionately help the wealthy".
Shadow foreign secretary Emily Thornberry also criticised the income tax policy as "tax cuts for the rich".
Red Dead Redemption II had biggest opening weekend in history of entertainment
The gross amount is lower than Rockstar's previous title, Grand Theft Auto V , which grossed $1 Billion in the first 3 days of Launch.
Labour Mayor of Manchester Andy Burnham tweeted in response: "At a loss to understand why we are doing this".
"Austerity is continuing on", the Labour politician said.
"Nearly 90% goes to the top half".
"Many public services are going to feel squeezed for some time to come", he said.
Yesterday's budget did indeed contain measures created to increase the tax bills of the transatlantic tech giants, with the chancellor outlining a plan to make as much as £400m a year from the introduction of the UK Digital Services Tax in 2020.
The Daily Telegraph reports that the Chancellor unveiled a post-Brexit tax cut for 32 million workers and declared the era of austerity was "finally coming to an end". Some of these are middle earners, we're talking about head teachers and people like that who have had a rough time as well as everyone else'.
"There's a whole range of examples of people I think that will be crushingly disappointed as a result of yesterday", he said.