Moratorium on tax costs US $45bn

NEWS The current moratorium on tax on ecommerce sales will be costing the US $45bn a year by 2006 if it is allowed to continue, according to the latest research. The report, by the University of Tennessee and quoted on newswire BizReport.com, said US states missed out on $13bn in tax last year. It said California alone missed out on $1.75bn in revenue last year. Currently a three-year moratorium on taxation over the internet has allowed firms to sell over the web without charging customers state taxes. However, the moratorium is scheduled to end on 21 October and there are increasing voices calling for websites to be brought in to line. Some are concerned the moratorium, brought in to encourage the growth of ecommerce, is now actively damaging state-delivered services.