the laws of unintended consequences
per-packet taxes mean fewer packets
per-transaction taxes mean fewer transactions
Using a country's IP address blocks to levy taxes means increased VPN usage (as mentioned above) to avoid taxation.
Do you _REALLY_ want "a tollbooth" on 'teh intarwebs' ? I don't.
And what effect would DRIVING COMPANIES AWAY from your country [not being a 'tax haven' any more] have on INCOME TAXES from employees that WORK there? [this could be moot if an entity is simply a shell company working as a pure tax shelter, which would have few or no local employees].
But yeah, if you drive them AWAY, your tax revenue will be ZERO. Understandably, nobody's gonna just BEND OVER and TAKE IT when gummints impose taxes and regulations.
unintended consequences are OFTEN the direct result. And politicians NEVER "get it".