Mumbai: An additional tax of six per cent has been enforced on online video streaming service Netflix in Pennsylvania; a move that could soon become a reality in other parts as well.
Though it is called Netflix tax, it will also apply to other services such as streaming and downloading music, e-books, and apps. According to reports, Pennsylvania joins the select bandwagon of states that have started enforcing local taxes on digital services.
Though additional taxes on cloud services, video streaming and others are only present in majority in the US, there is every possibility that similar taxes will be introduced in other parts o the world soon.
With the rampant inception of such services, even India may soon introduce such taxation, considering the massive debate on net neutrality in the country.
However, taxing stuff on the internet is not only irrational but also disrupts the free existence of such services.
Taxation on online services will have colossal implications on developing countries where data packs are expensive and net connectivity is unimpressive.
