Microsoft Corp’s UK chairman, David Svendsen, will today call on the UK government to stimulate internet uptake by introducing tax breaks for consumers and businesses on computers and VAT (value added tax) incentives for online purchasing. In a speech to be delivered at the Internet World conference in London, which has already been shown to ComputerWire, Svendsen will also criticize the government’s already widely criticized Electronic Commerce Bill as inflexible, unwieldy and inconsistent with existing internet business models, in its treatment of digital signatures.

Microsoft warns that UK is lagging far behind the US in its support and enthusiasm for internet-based business and commerce. The criticism will be yet another blow to the government’s attempts to place the UK among the leaders of electronic commerce developments.

The UK Department of Trade and Industry (DTI) said that it welcomed comments and suggestions from industry but rejected the criticism that the UK was lagging in the internet arena. The DTI said that figures to be released tomorrow will show that the up-take [of internet technologies] among businesses and consumers is now growing at a faster than expected rate a DTI spokesperson said. The spokesperson added that a variety of tax breaks to encourage commercial web use and computer ownership were introduced in the March budget by Chancellor Gordon Brown.