THE government is studying the possibility to impose a tax on e-commerce vendors to better regulate the market, Yao Jian, a Ministry of Commerce spokesman, said yesterday.

Authorities are working out a plan to regulate and develop the industry in a healthy manner, he said, without giving any details on the tax rate, scope, or timetable for implementation.

Earlier media reports said that a 5 percent business tax will be imposed on individual online vendors, but no details have been revealed so far.

Taobao, China's largest shopping site, said it will work with the authorities on the levy.