Options for Taxing the Digital Economy

This discussion document puts forward two options for taxing digital multinationals, either through implementing an internationally agreed solution from the OECD or unilaterally applying a digital services tax to certain digital transactions.   
Federated Farmers is strongly opposed to New Zealand adopting a unilateral position.  New Zealand is trade exposed and would leave itself open to retaliation, particularly in the current international environment.  The United States especially has been very clear about its opposition to attempts to tax the digital economy.  For the year ended March 2019 New Zealand’s total goods and services exports to the US amounted to around $9 billion, of which $2.2 billion was for meat and dairy...

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