Tax War: Tariffs and GST Tensions Mount

US Imposes Tariff Threat
U.S. President Trump has threatened to impose 100% tariffs on countries that impose a digital services tax, affecting goods sent to the U.S. The announcement comes in the wake of European Union's approval of tariff reductions on U.S. goods.

In India, Karnataka Chief Minister DKS has called on commercial taxes officials to take action against tax evasion, aiming to improve GST collection. The department will conduct random checks on invoices and track down bogus companies.

GST Rollout Preparation
In other news, India is revamping its tax administration to ensure seamless GST rollout. The new system will involve institutional positioning, allocation, and portfolio rotation.

In the U.S., the passage of Amendment 5 could potentially lead to steep sales tax increases. However, supporters claim it would modernize the tax code.

Global Tax Trends
Latin America is introducing VAT rules for digital services and marketplaces, while the U.S. is strengthening its stance on digital services tax.