WTO meet concludes:Developing developed world hit a deadlock on digital tax levy

The four-day World Trade Organisation (WTO) talks in Yaounde, Cameroon, Central Africa, have ended without an agreement between countries whether to continue a ban on taxes for online trade or not. Countries haven’t been able to collect import taxes on online services like digital downloads of movies, music, etc. Neither are they able to tax streaming services. Impact: Money for Governments: Without the ban, countries could start taxing these digital imports, which would increase government treasuries. What developing countries pitched: Developing countries feel they are losing out on potential revenue because of this ban. They estimate losses of around $10 billion per year. India alone could be losing over $500 million annually. US vs. Others: The United States wants to extend the ban for a long time (five years), but some countries are against it or want a shorter extension (two years). Brazil America reach deadlock Countries couldn’t agree on how long to extend the ban, leading to a standstill. The discussions will now be held in Geneva, where the WTO is headquartered. Other outcomes of the WTO event: Fisheries: Progress has been made on talks to reduce harmful subsidies (financial aid) for the fishing industry. Small economies: Agreements were reached to help small economies participate more in global trade. Other reforms: Discussions are ongoing to improve how the WTO works. The WTO couldn’t decide whether to keep a ban on taxes for online trade. This is debatable because it affects how much money governments can collect from digital imports like movies and music. Developing countries are especially concerned about the potential revenue they are missing out on.