Report: China to tax E-Commerce
- By IDG News Service, Stephen Lawson
- Aug 03, 2000
The United States has a ban on Internet taxes, but China will not let electronic
commerce go tax-free, the director of the country's State Administration
of Taxation has said.
E-commerce is no different from selling in physical stores and should
not be exempted from taxes, said Jin Renqing, in an interview with the news
weekly Outlook, according to the official Xinhua news agency.
China wants to maintain a neutral tax policy and preserve its tax jurisdiction,
Renqing said. The country of more than 1 billion people is expected eventually
to become a major e-commerce market.
Currently, only 16.9 million Chinese people use the Internet and just
14 percent of them regularly make Internet purchases, according to the China
Internet Network Information Center.
E-commerce has raised concerns among tax experts because it can extend
the reach of businesses beyond borders.