Online retail sales are expected to grow by upwards of 500 percent over the
next two years, according to more than half of those responding to a recent
Nineteen percent of the survey respondents predicted Internet sales,
estimated to be $8 billion last year, would top $100 billion by 2001. Over
half (53 percent) thought it would reach $50 billion to $100 billion and 21 percent
thought sales would reach $25 billion to $50 billion.
Only 7 percent thought
that Internet sales would remain lower than $25 billion over the two-year
The survey was conducted during a conference on E-Commerce Taxation at the
United States Chamber of Commerce/National Chamber Foundation and sponsored
by KPMG and Deloitte Touche.
Douglas Graham, a partner with KPMG’s Financial Services Consulting practice,
said he feels that “we are in a transitionary period right now, one in which
there is heightened interest in adopting fair policy.”
More than three-fourths (76 percent) of the survey respondents said, for the
purposes of taxation, remote electronic transactions should be treated the
same as catalogue sales.
And most (56 percent) thought a sensible legal,
fiscal and regulatory framework that minimized government regulation could be
adopted for the Internet.