French composer proposes CD Tax cut
Jean Michel Jarre is heading a number of musicians who are proposing a tax cut on CDs in Europe.
Jarre is quoted in saying "Does Europe think Shakespeare, Umberto Eco, Nietzsche or Victor Hugo are worth 15% more than Beethoven, Edith Piaf or the Beatles?, "We have to respect these new media as we respect old ones"
He claims that the denial to include audio CD’s on a list of “EU Cultural Products” (such as: books, newspapers, and theatre tickets) is akin to discrimination.
As internet music shoppers already see, lower VAT on CD’s means more sales and thus will encourage more people to buy/listen to a wider range of music. A petition signed by 140,000 consumers was presented to the EU commision by record retailers.
At present, VAT on Audio CD’s are as high as 25% in Sweden, and 16% in Germany.
Music sales dropped by 11% in the first half of this year, in part due to large scale piracy, according to he International Federation of the Phonographic Industry (IFPI)
The IFPI said around 60% of customers would buy more CDs if VAT was lowered, But Brussels argues that cutting VAT would distort competition