GENEVA: India’s move to extend the tax moratorium on e-commerce, including broadcasting of films, printed goods such as books and magazines, video games, software, films and music, has taken the developed world by surprise with suggestions from government officials. Electronic transmission should come under the tax net because developing and poor countries are losing $15 billion annually.
after the recent decision OECD Avoidance of tax in geographical areas on common minimum tax on MNCs, Commerce and Industry Minister Piyush Goyal A similar move was suggested for e-commerce on Wednesday. He said, “I would like to suggest that a similar effort be made on the custom duty component across the world to allow developing countries to share such a small portion of the super profits and the large profits that these some of the big tech. Companies are enjoying,” he said. world trade organization,
He added that the global digital giant is avoiding the levy. “While small exporters of physical products such as textiles, handlooms, clothing, footwear, mainly located in developing countries, are facing both domestic taxes as well as customs duties, large digital exporters are exempted from customs duties due to the moratorium. Discount is being given. ,
While the moratorium has been in force since 1998, when India was a small market, and has been renewed at every subsequent WTO ministerial meeting, the government believes that now is the time to impose taxes as developed countries benefit. is getting, especially with the advanced electronic transmission post-covid, “While the scope is to be decided, it may include everything Netflix for telemedicine, e-commerce and digital payments where electronic transmission is involved,” said Biswajit Dhara professor in JNU, If the moratorium is not extended, WTO members will have to sit down and define the scope, which is not going to happen overnight given the deep rift in the global body.
While many see it as a bargaining chip to get a better deal in some other area during talks here, officials indicated that the moratorium should be lifted sooner or later. According to the rules of the WTO, a country can also withdraw decisions on any issue.
after the recent decision OECD Avoidance of tax in geographical areas on common minimum tax on MNCs, Commerce and Industry Minister Piyush Goyal A similar move was suggested for e-commerce on Wednesday. He said, “I would like to suggest that a similar effort be made on the custom duty component across the world to allow developing countries to share such a small portion of the super profits and the large profits that these some of the big tech. Companies are enjoying,” he said. world trade organization,
He added that the global digital giant is avoiding the levy. “While small exporters of physical products such as textiles, handlooms, clothing, footwear, mainly located in developing countries, are facing both domestic taxes as well as customs duties, large digital exporters are exempted from customs duties due to the moratorium. Discount is being given. ,
While the moratorium has been in force since 1998, when India was a small market, and has been renewed at every subsequent WTO ministerial meeting, the government believes that now is the time to impose taxes as developed countries benefit. is getting, especially with the advanced electronic transmission post-covid, “While the scope is to be decided, it may include everything Netflix for telemedicine, e-commerce and digital payments where electronic transmission is involved,” said Biswajit Dhara professor in JNU, If the moratorium is not extended, WTO members will have to sit down and define the scope, which is not going to happen overnight given the deep rift in the global body.
While many see it as a bargaining chip to get a better deal in some other area during talks here, officials indicated that the moratorium should be lifted sooner or later. According to the rules of the WTO, a country can also withdraw decisions on any issue.