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October 7, 1998

OECD INTERNET MEETING BRINGS NET TAX FEARS

By CBR Staff Writer

The Organization for Economic Co-operation and Development meeting which will take place on October 8 and 9 in Ottawa, Canada is bringing the member states differences on e-commerce into sharp focus. The meeting will discuss issues regarding international policy to the internet and privacy. However, it is internet taxation that is likely to be a bone of contention for the different OECD members. The United States is the strongest advocate of a laissez-faire internet, with a publicly stated position of no new net taxes. The UK government has just issued a white paper which states its intention to remove unnecessary barriers and promote international co-operation so as to ensure free access between consumers and suppliers across national barriers. However, many developing countries see internet taxes as a valuable source of income as e-commerce becomes more widespread.

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