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

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

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

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

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

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

However, India maintains that there is no consensus on the scope of the moratorium and intends to oppose its extension during the forthcoming WTO meeting.

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

"There is no deviation from India's stance," affirmed one official, highlighting that India has submitted three proposals aimed at strengthening consumer rights, promoting digital public infrastructure, and fostering competition in e-commerce.

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

(With Reuters inputs)