Debate: e-commerce

Should online businesses be taxed? Two experts come up with two opposing views.

Not the right time to tax online business

Wuhan city officials are reported to have collected more than 4.3 million yuan ($665,000) in tax from a company that sells clothes online. This has left online store owners wondering whether online businesses are now taxable. In the long term, online commerce should follow the principles of the market but imposing tax on online businesses now could lower their overall efficiency and reduce people's motivation to start an online business. Therefore, the government should plan taxation cautiously.