Technology is changing rapidly and it looks like blockchains and cryptocurrencies hold much potential. Governments around the world are aware of this: since last year, the government of the Netherlands has run many pilots to test what integrating blockchain technology can mean for them.
While blockchain technology can significantly improve the administrative process of the government, there are also some other aspects that I'm not that keen on. The most important aspect is, as you might suspect, tax collection. If you read this, you probably don't like to be coerced into contributing to an immoral and inefficient system (in other words, taxation is theft). Let's see what the Dutch government has been up to.Collecting tourist tax via the blockchain
Last year, the Dutch government looked at the possibility to use blockchain technology to collect tourist taxes. In the Blockchain Pilots report, they say that the municipality of Rotterdam - that's where the test took place - lost € 400,000 of tourist taxes due to the emergence of platforms such as Airbnb that don't take taxation into account. In the pilot, they looked at the option to remove the entire tourist tax all together and make it voluntary.
Wait... VOLUNTARY TAXES?!
Yeah, in this test case they thought about it. When I dug a little deeper into the reports, however, I found some other clues.
When looking at the details of the test case, it wasn't just about collecting taxes that the government currently miss out on in fiat currency, but also missed taxes in Bitcoin. The government envisions the following situation:Step one: a hotel or person receives a booking of one of their rooms. Step two: they accept the booking.
SourceStep three: the hotel or person automatically pays the tourist tax in either fiat or Bitcoin.
A script should be integrated in the platform tha...