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Online tax legislation forthcoming

Online tax legislation forthcoming

Web-based commerce has provided several opportunities and challenges to most enterprises. Be it retail, service providers or the like, businesses now need to consider adopting online platforms to market and sell their goods or services, while ensuring the information technology (IT) department is on the same page as those in the executive seats.

Computerworld reported that online sales taxes are beginning to look like a reality, much to the dismay of many consumers and e-commerce companies. Under pressure from brick-and-mortar stores, as well as other entities, the government is moving to pass legislation to add the tax and cash in on the huge volume of transactions that occur online.

According to the news provider, e-commerce's explosive growth over the last few years has bothered state and federal legislators. As an example, the source cited the fact that Pennsylvania is not able to collect more than $400 million in taxes each year because of sales that take place online.

Internet Retailer reported this summer that a study revealed annual global web-based sales will surpass $1.25 trillion by the end of next year. Last year, the source noted, web-based sales exceeded $960 billion, while the popularity of online shopping continues to grow at a torrid pace.