EPlevy

EPlevy is a term used in policy discussions to describe a proposed electronic levy on digital services and transactions. It encompasses instruments intended to raise government revenue from the digital economy by taxing online activity and platforms that operate with limited physical presence. The concept is often discussed as a way to broaden the tax base and improve equity in digital markets.

Mechanisms vary across jurisdictions. Proposals may levy a percentage of gross digital service receipts, apply per-transaction charges, or assign a royalty on platform activity. The base often includes online advertising, cloud services, streaming, app stores, and marketplace transactions. Thresholds are sometimes used to exclude small firms, and rules aim to prevent double taxation in cross-border contexts.

Status and adoption are uneven. EPlevy has been debated in several countries and considered in international tax talks, including OECD-led initiatives. Some governments have drafted legislation or conducted pilots, but broad implementation remains limited and contingent on harmonization with existing tax systems and trade rules.

Critics raise concerns about regressivity, compliance costs for small businesses, and potential distortions in digital markets. Supporters argue it can address revenue gaps and level the playing field with traditional businesses. Cross-border implications and administrative complexity are central policy questions.

See also: Digital Services Tax, taxation of the digital economy, platform tax.