Argentina just launched a 3% tax on all online subscription services in a effort to bring in more revenue. The tax has been called the “Netflix Tax” and the government see it as a way to get a head of decreasing revenue from traditional cable taxes. Source (This story is in Spanish)
The tax in Argentina brings up the question about the future of cable tax revenues around the world. As we see services like Netflix replacing cable. If you still pay for a cable TV service check out your bill. You will likely see federal, state, and local taxes that can really add up. As subscribers drop that means less money for governments around the world. A very similar situation is effecting the gas tax. Higher mileage cars means less tax dollars per mile. Some places are testing out GPS units to tax you on how many miles you drive.
Currently most services like Netflix and Amazon Prime do not have any direct taxes applied to them in most parts of the world. There is currently a strong push for state sales taxes in the United States. Some people are saying service taxes on streaming plans are next.
If the Argentina tax is as successful as they believe it will be expect to see other countries to start implementing the new tax. We will keep a close eye on this development and will report any new developments. If there is a bill submitted we will let you know so you can call your representatives in a effort to fight it.