The European Union has implemented a 3% digital services tax on large technology firms operating within its borders, targeting revenues from online ads and transactions. The new rule primarily affects Google, Amazon, and Meta, and is expected to raise €8 billion annually.
Officials say revenues will support digital public infrastructure and offset inequalities in digital economies.
South Asian policymakers in India, Bangladesh, and Nepal—many of which struggle with taxing digital commerce—are monitoring the policy. They remain interested in possible global coordination under OECD guidelines to prevent tax evasion.
