Why should we agree on the government imposing a tax on e-commerce?
First of all, E-commerce is short for electronic commerce. It is a digital platform where people around the world are able to purchase any goods or services from the same or different cities, countries, or continents. An example of e-commerce platforms is Amazon, Alibaba, eBay, Flipkart, Shopee, or even any online stores’ personal website. Society seems to be enjoying the existence of e-commerce as it is not only convenient but also gives people the best prices with the best quality. Through the years, e-commerce has undergone an upsurge trend in its number of sales made, also supported by the happening of the pandemic where people are most likely to do their purchases online.
Based on research, in 2020 and 2021, e-commerce’s worldwide revenue sales have totaled up to 4.28 and 4.89 trillion US dollars, respectively. It has also been forecasted that in 2022 and 2023, the revenue will remain to have an upward trend where it will surge. Obviously, in 2022, 5.42 trillion US dollars will be made and there will be an increase of 48 trillion US dollars in 2023 since society will still be expected to shop more through e-commerce.
With the current affairs that the world has been dealing with up to right now such as poverty, building a better infrastructure for the country or city, government’s spending on vaccines, and et cetera. It has leaked numerous amounts of money and made the government struggle with its budget. As for that, the idea of taxing e-commerce may be a helping hand towards the government to solve these issues.
To exemplify, taking from the year 2020, just 15% of tax implied will earn the government 642 billion U.S. dollars. 642 billion can be used efficiently to donate to the poor by giving them a better quality of life and sending more children to school. Moreover, the government can build more infrastructures such as highways and provide more vaccines to end the pandemic.
Another reason to agree is that this will give equality towards offline stores as well. Offline stores have to pay for rent, employees and are also affected by the existence of e-commerce. When tax is imposed on digital shopping, the price of goods and services will increase, and offline stores will slowly regain their customers which will result in a balance of revenue for both offline and online stores.
This sums up that e-commerce has been a successful innovation, giving a great service platform towards society whether they are consumers or sellers. By imposing a tax on online purchases, it will help the government to find key solutions and improve the country.
Writer - Javeline Renata