The German Federal Association of the Phonographic Industry (IFPI) is calling for a reduction of the value-added tax on CDs from 16 to seven percent.
CDs are cultural goods just like books or sheet music, for which the reduced tax rate has always applied, said Gerd Gebhardt, chairman of the German phonographic associations. The key to the tax reduction lies with the federal government, which must present such a reduction to the European Commission. There, it will be reviewed again whether the sound carriers can be classified as tax-privileged cultural products in the EU. Culture Minister Christina Weiss has already endorsed the VAT reduction.
The music industry is facing an extreme problem, especially due to the numerous download options available on the internet. There are only a few purchasing arguments left for a standard CD. Many users with a broadband internet connection and a CD burner are using – illegally – the option to download music from the web. The enormous success of Apple's iTunes confirms the huge demand. With the changed value-added tax, purchasing incentives could be created again through a reduced price for music CDs. The association is now collecting signatures for the VAT reduction on its homepage. A popup will open on the page http://www.ifpi.de/ where you can participate in this action. Popup blockers must be disabled.
CDs are cultural goods just like books or sheet music, for which the reduced tax rate has always applied, said Gerd Gebhardt, chairman of the German phonographic associations. The key to the tax reduction lies with the federal government, which must present such a reduction to the European Commission. There, it will be reviewed again whether the sound carriers can be classified as tax-privileged cultural products in the EU. Culture Minister Christina Weiss has already endorsed the VAT reduction.
The music industry is facing an extreme problem, especially due to the numerous download options available on the internet. There are only a few purchasing arguments left for a standard CD. Many users with a broadband internet connection and a CD burner are using – illegally – the option to download music from the web. The enormous success of Apple's iTunes confirms the huge demand. With the changed value-added tax, purchasing incentives could be created again through a reduced price for music CDs. The association is now collecting signatures for the VAT reduction on its homepage. A popup will open on the page http://www.ifpi.de/ where you can participate in this action. Popup blockers must be disabled.
