Nowadays, many people suggest that introducing heavy taxes on digital transactions to supply social services is important, but others argue that it might have negative effects on technological and economic growth.I think that applying higher taxes can limit work of payment service providers, and it can also emerge problems related to ordinary people, as companies can carry out new taxes for users.
Applying higher taxes on the digital transactions for the sake of social services has many positive effects, such as running new programs related to ecology and improving people’s lifestyles. After the high taxes, government should care about the nature funds as they do with the technologies, giving money them to planting more trees, saving forests from being cut as well as building more wells in the places with the lack of water. For example, in 2024, in the Morocco new law about digital money transfer was introduced. People should pay 5% of transferred money instead of the 3%. However,all the money from this new law was spent to the reforesting desert in the north-west of the country. Additionally, these financial resources can be spent to save homeless people from dying in the cold, by building new residences for them to live and improve their health.
Although higher taxes have positive sides, it doesn’t always meant that it is useful. After the government carries out higher taxation, payment services also do it for their customers to cover their expenditures. Moreover, people will need to spend more money than it was to transactions. It can also lead to this kind of services to the bankrupt, by leaving government without the some part of the fiscal charges, which was vital way to make money. For more, by putting this law in the practice government can make people to use cash, which is the least effective way to collect the tax for the government.
In conclusion, making taxes higher is the least effective way to make money for government. Also, it can leave the country without part of this charges.