India is not in favor of further suspending tariffs on e-commerce at the WTO meeting in Abu Dhabi later this month, as it would affect developing countries, officials said on Tuesday.
The official said there is a work plan on e-commerce under which World Trade Organization (WTO) members should continue to discuss the issue.
“We are not in favor of an extension. We are in favor of continuing the work program. We need to look at this issue from a development perspective and not from the eyes of big tech companies,” the official said.
The scope of the moratorium needs to be discussed because of its impact on income.
Estimates suggest that the potential loss of customs revenue to developing countries amounts to approximately $10 billion each year. In India's case, that could be more than $500 million annually.
“We need a clear definition of e-commerce. We need policy space in this area,” the official added.
The topic will feature prominently at a meeting of 164 trade ministers in Abu Dhabi from February 26 to 29.
World Trade Organization (WTO) members have agreed not to impose tariffs on electronic transmissions since 1998, and the Council of Ministers (MC), the highest decision-making body of the 164 member states, has agreed to suspend tariffs. It has been regularly extended.
India and South Africa have on several occasions asked the agency to reconsider the issue, highlighting the negative impact of the moratorium on developing countries.
India has seen an increase in imports of electronic transmissions, primarily movies, music, video games, and printed materials, some of which may be subject to suspension.
While digital players' profits and revenues have been steadily increasing, the government's ability to check these imports and generate additional customs revenue has been limited by the moratorium.
Developed countries such as the United States, Australia and Japan want the moratorium to be extended.
(This report is published as part of an auto-generated, syndicated wire feed. Other than the headline, copy has not been edited by ABP Live.)
