Tax man counting bricks no longer works for states in the global digital economy
Systems need to be overhauled to get big tech multinationals to pay their dues on continents such as Africa
When GDP was first postulated in the first half of the last century, it measured physical goods and services within a brick-and-mortar environment, to represent a country’s economic contribution to the global economy. But in a world where assets and services are not just physical but digital, intangible, fluid and often volatile, a century-old tax regulation is no longer fit for purpose and needs an overhaul.
Globally, digital goods and services drive today’s $11.5bn digital economy, and its growth trajectory is set to soar exponentially due to the acceleration of digital transformation, decentralised workplaces and digital-first environments that have become the Covid-19 pandemic’s preferred way of working. Unfortunately, our systems and legislation have failed to keep pace with the way goods and services are produced and consumed in today’s world...