France Eyes Cultural Tax on Electronics

May 15, 2013 Taxation in France

Cultural tax on electronicsPARIS – Electronic devices in France are set to become more expensive, as the government mulls a new tax on all internet-capable gadgets.

On May 12th a panel appointed by the French government released a new report on potential means of promoting the production and public interest in French films, television, music and other cultural products, suggesting that a “cultural tax” should be enacted on all electronic devices which have the capability of connecting to the internet, including smartphones, tablets and computers.

The extra revenues raised through the tax would be used to fund the country’s “cultural exception” programs, which are aimed at protecting French culture, and include initiatives to provide more funding to the production and advertising of French films, music, literature, press and video games.

If approved, the tax would be set at between 1 percent and 4 percent of the sales price of the device, and could raise up to EUR 86 million per annum.

According to the Minister of Culture of France Aurélie Filippetti, the funds raised from the tax would directly benefit the country’s cultural sector, which would, in turn, significantly boost the number of jobs available in the industry.

The Minister explained that the tax could be approved and included in the national budget as early as next year.

Photo by stuballscramble