Paper Contents
Abstract
The COVID-19 pandemic has underscored the critical need to reform global taxation frameworks to address the rise of the digital economy. With multinational corporations exploiting gaps in traditional tax systems through profit shifting and tax avoidance, the demand for effective digital taxation has intensified. This research examines the evolution of digital taxation, focusing on challenges such as legal jurisdictional disputes, political complexities, and the need to balance innovation with equitable policies. It explores opportunities, including increased government revenues, fostering fairness in the global tax ecosystem, and promoting transparency and accountability among digital corporations. Case studies from India, the European Union, and the United States are analysed, highlighting successes like India's Equalization Levy and the OECD's Two-Pillar Solution, alongside lessons learned from political and legal disputes. The findings emphasize the necessity of global collaboration and adaptive frameworks to ensure sustainable and equitable taxation in the post-pandemic digital economy. The paper concludes by advocating for forward-thinking solutions that harmonize innovation, equity, and efficiency, positioning digital taxation as a key driver of economic justice in an increasingly interconnected world.
Copyright
Copyright © 2025 Jyoti. This is an open access article distributed under the Creative Commons Attribution License.
