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International relations

WTO digital tax freeze in spotlight as India, others rue lost revenue

Tariff-free status of streaming and other e-services up for debate again in Abu Dhabi

Since 1998, the WTO has kept a moratorium on taxing digital products and services, but emerging economies are pushing back. (Nikkei montage/Source photo by Reuters) 

MADURAI, India -- A moratorium on taxing digitally transmitted products, from movies and music to software and industry data, faces a critical juncture this week at a World Trade Organization conference in Abu Dhabi.

India, Indonesia and South Africa are among the key skeptics of the moratorium, which has been in place since 1998. Opponents of the policy say it denies emerging economies a valuable source of revenue while benefiting advanced countries. Those in favor insist it keeps prices reasonable for consumers and enables the spread of digital services worldwide.

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