US Senate stalls Net tax for three years

NEWS The US Senate has voted overwhelmingly in favour of legislation to bar Internet taxation in the US for three years. The approval of the three year moratorium on local and federal Net taxes, is in line with the mood in the House of Representatives which has already legislated for a delay on Internet taxes. Ecommerce revenues have significantly increased over the last twelve months in the US and State authorities have been increasingly worried that they will start to lose revenues from conventional taxation. According to moratorium bill sponsor, Senator Ron Wyden, the decision is an effort to gain breathing space so that the federal legislature can work out the ground rules for the coming digital economy. Vice president for European research at Giga Information Group, Martha Bennett said she approves of the move to limit Net taxation for the time being. However, she added: "Taxation is a stumbling block on ecommerce, but we all depend on taxation to fund public services. If everyone sticks to the three year moratorium, I think we can sort the issue out, but it is important that we tax on a level playing field."