India will oppose US and European efforts to extend a global ban on cross-border e-commerce duties at the World Trade Organization meeting next week, two government officials said, fearing a continued huge loss of revenue.
According to the authorities, India will make the case at the WTO’s Ministerial Conference in Abu Dhabi starting on Monday. South Africa, Indonesia, and South Africa all support allowing poor countries to impose taxes on cross-border electronic communications.
“Before asking for the extension of a moratorium, these issues need to be discussed and settled,” one of the officials said.
The officials declined to be identified according to government policy on discussions at international forums. The Commerce Ministry, which is leading India’s negotiations at the WTO, declined to comment.
In 2022, WTO members came to an agreement to prolong the ban on levies on electronic trade. Supported by powerful nations such as the US, UK, and EU, they contend that allowing it to expire would jeopardise the worldwide recovery of e-commerce.
According to WTO estimates, developing nations lost over US $ 10 billion in customs duty revenue in 2017 from the import of e-commerce goods from rich nations, with India suffering a loss of almost US $ 500 million.
