Economic Impact of Digital Taxation: A Case on Information Communication Technology Industry Sri Lanka.

A.H.S. Pemerathna



The principle intention of this study is to diagnose the possible impact of digital taxation on the economic factors like, investment, consumption and export related facts. For this purpose researcher has identified the Information Communication Technology sector as the main sector as most of the digital products are created in this sector.
Literature review has been used to identify the history and the evolution of the digital goods taxation practices and has identified the policies related to digital taxation in USA and EU. The methodology of the research was emphasized on Qualitative approach. And the induction taken place in the research is mainly supported with qualitative interpretation with data collected through interviews and survey questions.
Sri Lanka was diagnosed as a low taxed country in Export oriented ICT industry. Also it was found out that Foreign MNCs investment intentions are encouraged with this approach, increasing investment flow to the country. The related case comparison with USA and EU zones has proven that Sri Lankan demand for digital goods are stimulated with no taxed environment. B2B ICT services like Telecommunication to web design and development are directly benefited from the non-tax environment of the country. Disadvantages like loss of income through digitally imported goods are also discussed in the study.
This paper would contribute to the academia of finance through the unique finding on the digital taxation. Further it would identify the necessary policy gaps of digital taxation that would enlighten the policy makers in the country. Lastly this research contributes towards the business fraternity and would throw some light on their future involvement in Digital media in their business activities.

Keywords: Digital Goods; Digital Taxation; Government Policies; Digital Markets; Taxation Regimes; Taxation Framework.

Full Text:



  • There are currently no refbacks.

Faculty of Management Studies & Commerce