Digital Services Taxes (DSTs):
Former US President Donald Trump has threatened additional tariffs on countries imposing Digital Services Taxes (DSTs) on American tech giants, calling them discriminatory.It is gross-revenue tax (not corporate income tax) levied on specific digital services like online advertising, digital marketplaces, intermediation, and sale of user data. Applied on the revenues generated from users in the taxing country, irrespective of where the company is headquartered.Aim is To ensure fair taxation of global digital companies that earn significant revenue from a country’s users without having a physical presence there and To address tax base erosion and ensure that value created by user participation is taxed locally.
