London (CNN Business) Britain will start charging a tax on digital services in three weeks despite fierce opposition from Big Tech and the US government.

The UK government said Wednesday that it's moving ahead with a 2% tax on revenue from digital services such as search and advertising starting on April 1. The levy will apply to firms with global sales of more than £500 million ($648 million), with at least £25 million ($32.4 million) coming from UK users.

"This will ensure the amount of tax paid in the UK reflects the value these businesses derive from their interactions with" users in Britain, the Treasury said in its 2020 budget

The tax was first proposed in 2018, and draft legislation for the tax was introduced in July 2019.

The measure is designed to ensure that large tech companies — many of them American — pay more tax on sales made in the United Kingdom. The US government has argued, however, that taxes on digital services unfairly target American firms.

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