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AIC warns about risks of RI ending WTO's digital goods tax moratorium
The Asia Internet Coalition (AIC) warns countries will pay the ultimate price for ending the moratorium, while small and emerging enterprises will be weighed down by significant extra costs.
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Illustration of learning through social media or internet (Shutterstock.com/mrmohock)
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ountries opting to exit a decades-old moratorium on e-commerce that prevents imposing customs duties on electronic goods, would risk their own digital and overall economies, the Asia Internet Coalition (AIC) has warned.
The AIC, which advocates for the interests of internet companies such as Google, Meta and others, said ending the moratorium could negatively impact business productivity, innovation, national competitiveness and job creation.
Indonesia, South Africa, Sri Lanka and Pakistan are among the countries looking to end the moratorium over the past few years, with Canada recently joining the movement as well, the AIC said.
“Customers have been used to low prices with any losses on the collateral costs offset by the benefit of digital services,” AIC managing director Jeff Paine told The Jakarta Post on Tuesday.
“If the moratorium ends, these extra costs will likely be passed on to local, small and emerging enterprise businesses.”
Electronic transmissions include online deliveries such as music, e-books, films, software and video games.
The fate of the World Trade Organization’s (WTO) longstanding moratorium on customs duties on electronic transmissions hangs in the balance, with its expiration set for March 31 unless WTO members decide on its renewal.
