Texas, once a hub for data centers with generous incentives, is now requiring these facilities to fund the grid infrastructure they rely on, shifting costs from households to the industry. This move by Governor Greg Abbott could set a precedent for AI buildout regulation nationwide.
California Democrats have passed a new sales tax on digital software downloads, set to take effect next year. Governor Gavin Newsom is expected to sign the measure, projected to generate $900 million annually. The tax aims for parity between physical and online software sales.
A Meta Platforms data center in Richland Parish, Louisiana, has significantly boosted local tax revenues, enabling teacher bonuses of up to $50,935. This surge in funding, driven by increased sales tax collections and a direct payment from Meta, contrasts with opposition to data centers elsewhere in the US.
Pakistan's finance minister announced plans to remove sales tax on sanitary towels and related items, a move hailed by campaigners and UN Women. The decision follows a court case brought by young lawyers against the "period tax", which made products unaffordable for many.
Pakistan's government is removing the 18% sales tax on women's menstrual products and birth control, dropping it to zero in the next fiscal year's budget. This follows a successful lobbying and legal effort by activists.
Japan's planned 8% sales tax cut on food is delayed due to inflexible cash registers requiring a major overhaul, potentially taking up to a year, amidst funding concerns and accusations of delay tactics.
UK Chancellor Rachel Reeves announced a temporary cut in VAT on attractions like theme parks and theatres from 20% to 5%, effective late June to early September, to support the economy during the Iran war.
California Governor Gavin Newsom proposed expanding the state's sales tax to include digital prewritten software, aiming for parity with in-store purchases. The move could impact software and SaaS companies and mirrors digital services taxes seen in other countries.
