Pakistan and other developing nations have reluctantly conceded to a one year moratorium on internet taxation. The moratorium was proposed by President Clinton at the World Trade Organization conference in Geneva. The pact, as it stands, falls short of the perpetual ban US officials originally sought. The Americans argue that trans- border information flow, in the form of voice traffic on telephone lines, does not presently attract tariffs. Imposing new taxes on software and information that cross borders in the same way would discriminate against the nascent e-commerce industry, they say. Less affluent nations are unconvinced. Pakistan’s representative raised questions about the legality of the moratorium (CI No 3,414). Delegates eventually agreed to hold off on net taxes for one year. During that time, negotiators are to come up with a much more detailed proposal for presentation at the next ministers’ meeting.
