Internet Free Trade Zone in Vanuatu?

The government of the tiny island state of Vanuatu are apparently wise to the possibilities of small autonomous states - they're positioning themselves as an Internet Free Trade Zone. Get this :

"If your web site sells products that can be delivered digitally - information, music, software, or images - why not base your site where you won't have to pay taxes on the profits or sales? Under the new e-Business Act 2000, you can set up a Cybersuite and conduct business from Vanuatu without even setting up a company. "

OK, so this is hardly new news, as Kazaa and WinMX have already chosen to incorporate in Vanuatu, but it's the first it's been drawn to my attention - maybe I'll investigate...