According to the finance minister, the tax will be created to ensure that established tech giants and not startups were shouldering the burden.
"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.
"Fiscal Phil" has targeted online tech giants by announcing a new digital services tax in his Budget, promising to "deliver worldwide corporate tax reform for the digital age". Hammond criticised the slow progress the two organisations have made, calling it "painfully slow".
During the Budget 2018 announcement at the House of Commons this afternoon, Chancellor Phillip Hammond said a global solution was needed to fairly tax large technology companies around the world, but an agreement was not happening quick enough.
Facebook earlier this month said its British tax bill tripled to £15.8 million a year ago compared with 5.1 million pounds in 2016.
Whitey Bulger killed immediately after arriving in West Virginia prison
Bulger, 89, had recently arrived at the high-security penitentiary USP Hazelton in West Virginia, according to the Boston Herald . Bureau of Prisons officials and his attorney did not say why he was being moved, but he was known to have medical ailments.
But in many ways this new digital tax looks like a knee-jerk reaction - it may appeal to voters here, but it fails to respect how global tech is a force for good, not least in how these firms support, invest, and spin off many great businesses in the UK.
British MPs have previously criticised tech companies' tax arrangements as "immoral". Britain joins other countries who have embarked on the move to tax digital services, as countries keep in pace with the changing digital landscape and how businesses operate.
Hammond highlighted that the looming digital tax would not be an online sales tax on goods purchased online.
Hammon should be "thanking his lucky stars", Johnson said, for favorable borrowing forecasts which allowed him to hike spending, mostly on the National Health Service, without committing to more debt or tax increases.
With control over income tax rates and bands devolved to Scotland, Mr Mackay said while he would set out his plans for taxpayers north of the border on December 12, he pledged he would "choose a fair, more progressive path" than the Conservative Chancellor.
And he said that, even after the injection of around £2 billion a year into Universal Credit, there would be "millions of losers" from the introduction of the new benefit. In a column on The Drum, IAB chief executive Jon Mew argued that such a tax risked harming the UK's digital ad market.