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Digital tax will make online shopping costly


THE STANDARD
OPINION
The digital economy has gained prominence globally as a driver of innovation and competitiveness. This growth has been fuelled by the Covid-19 restrictions that are transforming the traditional ways of conducting business to online interactions.
As digital technologies become the cornerstone of our daily activities; governments, individuals and businesses must move in sync.
While the fruits of the digital economy are insurmountable, governments and international organisations such as the Organisation for Economic Co-operation and Development are grappling with its taxation. Kenya unilaterally introduced income tax and Value Added Tax (VAT) on digital services effective January 2021 and March 2021 respectively. ....

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