Friday June 29, 2012
Japan eyes tax on sales by foreign Internet vendors
TOKYO: Japan may slap a tax on online sales of electronic books, music and other products by overseas Internet vendors such as Amazon.com, Finance Minister Jun Azumi said Friday.
The comments from Azumi come days after Tokyo passed a bill through its lower house of parliament that would see sales tax double to 10 percent by 2015.
But that tax is applied only to sales by Japanese Internet vendors, putting them at a disadvantage to foreign electronic retailers who are exempt.
Azumi on Friday said the imbalance may be prompting some Japanese firms to boost their overseas presence to take advantage of the apparent tax loophole.
"We must seek to ensure fairness over taxation on online content sales so that companies at home will not be put at a disadvantage," he told a regular news conference, adding that he would set up a panel to study the issue.
"I hear it has become a reason for domestic industries to move their bases overseas," he added. - AFP