Government to oppose extended e-commerce tariff ban at WTO: Report

Government is set to oppose efforts by United States and Europe to extend a worldwide ban on cross-border e-commerce duties at upcoming World Tre Organisation (WTO) meeting, two government officials familiar with matter told Reuters.

decision comes as India, alongside South Africa and Indonesia, seeks to vocate for rights of developing nations to impose taxes on cross-border electronic transmissions, citing concerns over significant revenue losses. push to dress this issue will be a key nda item for India at WTO's Ministerial Conference commencing in Abu Dhabi on Monday.

Indian officials have underscored evolving nature of commerce, ting that digital services, including items like books and videos, were previously subject to tritional tariff rules but are w available in digital format and should be liable to duties.

"Before requesting an extension of moratorium, se issues need to be thoroughly discussed and resolved," one official stated.

existing moratorium on e-commerce duties, agreed upon by WTO members in 2022, has garnered support from major players such as United States, Britain, and European Union, who argue that allowing it to expire would jeopardize global e-commerce recovery.

However, India maintains that re is consensus on scope of moratorium and intends to oppose its extension during forthcoming WTO meeting.

According to WTO estimates, developing countries incurred approximately $10 billion in customs duties loss on import of e-commerce products from developed nations in 2017, with India alone facing a loss of nearly $500 million. With surge in imports of electronic transmissions, including movies, digital books, and video games, India stresses growing magnitude of potential revenue losses.

"re is deviation from India's stance," affirmed one official, highlighting that India has submitted three proposals aimed at strengning consumer rights, promoting digital public infrastructure, and fostering competition in e-commerce.

Ministry of Commerce, spearheing India's negotiations at WTO, declined to comment on matter.

(With Reuters inputs)