Digital Taxation and Fiscal Policy

Digital Taxation and Fiscal Policy explores the fundamental restructuring of public finance necessitated by the shift from traditional, physical-based taxation to a synchronized digital framework. As the 2026 digital economy renders the concept of "Permanent Establishment" obsolete, this volume examines how value creation through user data and algorithms challenges established fiscal structures. The research investigates global shifts toward the OECD's Two-Pillar Solution and the 15% Global Minimum Tax, alongside India's specific adoption of the Goods and Services Tax (GST), Equalization Levy, and the Income-tax Act, 2025. By analyzing evidence from 2015 to 2025, the book demonstrates how digital taxation expands the tax base, reduces fiscal deficits, and stabilizes debt-to-GDP ratios. It further explores "Tax Administration 3.0," utilizing AI and real-time data integration to enhance compliance. Ultimately, this work provides a roadmap for balancing revenue mobilization with digital innovation to ensure long-term fiscal sustainability in an increasingly borderless global economy.