The formidable growth potential of global electronic commerce has pushed it towards the top of the agenda in boardrooms and government offices throughout the world. The main message from these meetings is that governments should work together with the private sector to take electronic commerce by the horns and steer its development. The OECD began publishing on various aspects of the global information society over two decades ago and ever since has been working to develop an environment in which electronic commerce can flourish. And in the last three years electronic commerce has become an explicit priority in the activities of the Organisation. That shift reflects the recent upsurge of electronic commerce, and of course that it is a cross-border phenomenon with implications for governments and business everywhere.
Electronic commerce is set to be one of the driving forces behind the global economy.
It is a potentially positive force, which can improve the ways people participate in society as citizens, consumers, workers and entrepreneurs. But its rapid development and transborder character has thrown up a number of difficult issues that have to be addressed. For example, the question of taxation, in particular whether products transacted should be taxed at the point of output or consumption, requires some agreement. There are many types of indirect taxation and levels in the OECD area. For a start, companies selling electronic products over the network, such as software, which can be downloaded across borders, will clearly want to pay their tax where the rate is lowest.