Chasing Mirage of E-Transmission ?

 

Context :

[ A ]

 

Piyush Goyal suggests customs duty on digital exporters  /  TNN  /  16 June 2022

 

Extract :

 

India’s move to play hard on extending tax moratorium on e-commerce, including transmission of films, printed matter such as books and journals, video games, software , movies and music , has taken the developed world by surprise with government officials suggesting that ELECTRONIC TRANSMISSIONS  should come under the TAX NET as developing and poor countries are losing upward of $ 15 BILLION annually

   
After the recent decision at OECD on common minimum tax on MNCs avoiding tax across geographies, commerce and industry minister Piyush Goyal on Wednesday suggested a similar move for e-commerce

“ I would like to suggest a SIMILAR EFFORT be made on CUSTOM DUTY component across the world to at least allow the developing countries to share such small portion of the SUPER PROFITS and HUGE BENEFITS that these few big tech companies are enjoying “, he said at WTO

  
He said global DIGITAL GIANTS are avoiding levies.

“ While small exporters of PHYSICAL PRODUCTS like textiles, handloom, clothing, foot wear, mainly based in developing countries , are facing both domestic taxes as well as custom duties , the BIG DIGITAL EXPORTERS are being exempted from custom duties due to the moratorium “

“ While the scope is to be decided, it could include everything from NETFLIX to TELEMEDICINE , e-Commerce and DIGITAL PAYMENTS , where ELECTRONIC  TRANSMISSION is involved “, said Biswajit Dhar, a professor in JNU.

Although many see it as a BARGAINING CHIP, to get a better deal in some OTHER AREA during the negotiations here, officials indicated the moratorium must be lifted sooner or later.

According to WTO rule,  even ONE COUNTRY can hold back a decision on any issue

 

[ B ]

WTO breaks a 7-year negotiating drought, agrees on all issues including fisheries subsidies / ET / 17 June 2022

Extract :

It was also agreed to find a final solution to the issue of continuation of moratorium on imposing customs duties on electronic transmission of goods by the next ministerial conference of the WTO or not later than March 2024.

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MY TAKE :

I am reminded of the Government’s effort to :

Ø  Regulate / Control , use of plain / ordinary,  shortwave / medium wave RADIO transmissions

Ø  Earn a few lakhs of Rupees through such control

Way back in 1960, every year, I had to stand in a queue at the Vile Parle post office, to pay up Rs 5 / 10 , and get my RADIO USAGE LICENCE booklet , get stamped for one year renewal

If , during the course of the year, I purchased  another ( could be even, portable ) radio, I had to go to the post office , fill-up a form / pay another Rs 5 / - and get the window-clerk to “ add “ that entry in my license !

The “ Controls “ in relation to a CORDLESS PHONES , were more stringent

( Read at :    Once Upon a Time………. 08 June 2020   )

 

I suppose, at some point of time, someone in Government realized that it was simply IMPOSSIBLE to regulate radio transmissions ( of course, only WHO owned HOW MANY radios – but no way of knowing or controlling WHO was listening – tuning in – to WHICH radio station and for HOW LONG )

When TV transmissions started ( during 1972 Asian Games held in Delhi ? ), no one in the government, dared to find out WHO / HOW MANY , were watching those VIDEO TRANSMISSIONS !

 

FAST FORWARD 50 YEARS ( 2022 )

 

The “ E Transmission “ eco-system comprises of mind-boggling numbers of :

 

#   Device Manufacturers

    ( Smart watches / Mobiles / Tablets / Laptops / PCs / TVs / Alexa / SIRI etc )

     Before long, every home will have 50 / 100 gadgets-appliances-bulbs etc.,

     connected to Internet ( IoT )

     Of course, before long, all the vehicles too will be connected to Internet – and

     after a few years, all MEDICAL DEVICES too, will be connected to Internet

     

     How  long before Houses – Clothes – Food ( Roti – Kapda – Makan ) get

     connected to Internet  ?

 

#   Internet Service Providers

     ( ISPs – MSPs – Telcos - Starlinks – LiFi – Search Engines – BIG TECH etc )

 

#   E-Transmission Software Manufacturers

     ( Op Systems - Apps – 5G – 6G - etc )      

 

 #  E-Transmission Hardware Manufacturers

     ( Transmission Towers – transmission equipment  etc )

 

When Billions of people ( soon, everyone on the Earth ) are “ receiving – forwarding - transmitting “ , Trillions of bytes of CONTENT ( sound – sight – smell – touch – taste etc ), EVERY SECOND , to ANY ONE else on the earth, how will any government  find a way to “ TAX “ such e-transmissions ?

Besides Neuralink of Elon Musk, several companies are working on :

Transmission of thoughts / commands to devices, by people , simply “ thinking “ !

That transmission could be across state borders – right around the earth ( or even space ? )

 

MORAL of the STORY :

 

Dear Shri Piyush Goyalji,

 

Before the next WTO round in March 2024 , please use this “ time gained “ to figure out how to use this “ Bargaining Chip “ to get the DEVELOPED COUNTRIES to agree to grant to any Indian Citizen who applies,  a 5 year “ Work Permit “ in those countries

 

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  20 June 2022