Following the precedent set by some European countries such as Austria, France, Italy, Spain and the United Kingdom, New Zealand has indicated it will introduce a digital services tax. This is expected to affect internet giants such as Google and Facebook, according to the New Zealand Herald.

Per New Zealand’s Prime Minister, Jacinda Ardern, this is aimed at achieving ‘fairness and balance’ in the country’s tax system. Currently, according to Ardern large internet firms have been fulfilling their tax obligations as required by law:

Highly digitalized companies, such as those offering social media networks, trading platforms, and online advertising, currently earn a significant income from New Zealand consumers without being liable for income tax.

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