taxing facebook Archives — LIRNEasia


In a recent interview with Yarl TV, LIRNEasia Chair Prof. Rohan Samarajiva shed light on the potential impact of Sri Lanka’s new tax policy on the digital sector. The discussion extended to the taxation of multinational digital service providers like Facebook and Uber, widely used in Sri Lanka.  Prof. Samarajiva emphasised the crucial role of the government in streamlining the tax payment process for these companies.
In an era marked by the rapid growth of the digital economy, the issue of taxation on technology multinationals has taken centre stage. However, many countries in the Global South find themselves unequipped to harness tax revenue from these digital giants. Several policy options are available to countries. The Organisation for Economic Co-operation and Development (OECD) and the United Nations (UN) have proposed treaty-based solutions, but questions have emerged about the revenue potential of these multilateral proposals, the feasibility of their timely implementation, as well as whose interests they serve. Meanwhile, several countries — including some in the Global South — have implemented their own domestic solutions.