US summit calls for e-taxation to be put on hold

The e-commerce Commission, the board responsible for making recommendations on the increasingly controversial issue of internet taxation, yesterday adopted proposals to extend the freeze on new taxes on the internet.

Following the Internet Tax Freedom Act of October 1998, a three-year moratorium was imposed on any new internet taxes – a move designed to boost e-business in the US.

But some government and state officials fear the loss in revenue from the burgeoning US internet sector. Resentment among local government officials concerned with a loss of up to $500m a year, peaked with the threat of legal action against the commission.

The 19-member commission, which includes representatives from companies such as AT&T, AOL and Time Warner will submit a report to Congress next month detailing its proposals.

US summit over future of tax freedom for internet sales

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