
Published: 28 October 1999 10:34 GMT
Australian Treasurer, Peter Costello has said the Australian Federal Government may consider taxing Web-based transactions, according to a Reuters report.
Speaking at a social event, Costello said the government should look at applying the country's 10 per cent goods and services tax (GST) to the delivery of goods or services sold on the Internet.
Graham Opie, director at research house Vanson Bourne, said: "It's inevitable." But he thinks that it could end up creating virtual tax havens. Opie compared the situation to the evolving betting market, where bookmakers are setting up off shore gambling sites in places like Gibraltar to avoid nine per cent tax.
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