Origin-Based Taxation

Origin-based taxation is a system where taxes are levied based on where a product or service is produced, rather than where it is consumed. This means that if a company makes goods in one location and sells them in another, the tax responsibilities are determined by the location of production. This approach can help local economies benefit from the activities of businesses within their borders but may lead to challenges in international trade, as countries might have different tax rates or systems, affecting competitive balance.