OECD issues call for e-commerce

Dismantle the barriers to global electronic commerce, was the rallying call at the Organisation for Economic Co-operation and Development (OECD) conference in Turku, Finland last week.

Attendees heard pleas from vendors and providers to ensure that the internet was not constrained by onerous regulation and static European telecoms infrastructures.

The rigid telecoms laws currently in force in Europe were debated, and the US' refusal to ship the latest encryption products were condemned as key barriers to the growth of e-commerce. Taxing the Net remains a top priority.

Commenting on the discussions between providers and government bodies, Johan Helsingius, EUNet international director of product development and marketing, said: 'We feel the OECD Turku conference is a vital forum to help remove barriers to electronic commerce, an area which we feel is crucial.'

The OECD wants to encourage e-commerce, but was concerned about the potential for tax evasion and avoidance. It is discussing these issues with IT and financial services organisations.

All fiscal authorities are worried about the internet's effect on falling tax revenues. The OECD has acknowledged the extent of the problem, warning that 'it may pose a serious challenge to governments in maintaining their revenue base'.

The OECD wants vendors and service providers to work closely, developing software to check internet supply and payment chains, and establishing clear audit trails for taxation.

Donald Johnston, secretary general of the OECD, said: 'We need to ensure broader access to the internet, establish trust for consumers through appropriate redress mechanisms and verifiable identities, and form a predictable context for taxation, electronic payments and international delivery. Government treasuries should be amply rewarded by the increase in profitable commercial activity which electronic commerce promises.'