[kictanet] Day 8 of 10:-IGF Discussion, Economic Issues

[mwende njiraini]

Morning,



Today we continue our discussions on economic issues.



As the internet becomes critical to global trade, there is debate as to
whether governments should expand their tax base to include internet
transactions.  Internationally there have been proposals for the
introduction of e-taxation based on the "Ottawa principles" of destination
and origin taxation.  Under the destination principle supplies of goods and
services are taxed in the jurisdiction in which the goods and services are
consumed. This means that exports are zero-rated, while imports are taxed.  On
the other hand under the origin principle supplies are taxed according to
their origin. This means that exports are taxed but imports are not taxed.



In your view what principle should be adopted in relation to e-commerce for
developing countries? Should the internet be a tax-free zone or have special
taxation treatment?



You are encouraged to contribute to previous discussion threads.



Reference:

1.      Internet Governance: Economic Issues Available at:
http://textus.diplomacy.edu/textusbin/env/scripts/Pool/GetBin.asp?IDPool=629[Accessed
August 2008]

2.      Options for Taxing Imported Services.  Available at:
http://taxpolicy.ird.govt.nz/publications/files/html/gstimported/c4.html[Accessed
August 2008]





Disclaimer: These comments are the author's own
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