Are Digital Services Taxes a Viable Solution for the EU Budget?

Are Digital Services Taxes a Viable Solution for the EU Budget?

Digital services taxes address a real concern—the need to adapt taxation to the digital economy—but they are not the right solution. They raise limited revenue, are often passed on to consumers rather than large digital firms, create economic distortions, increase complexity and compliance costs, negatively impact innovation and competitiveness, and risk international retaliation.