'iPod tax' plans dropped in Japan
Huge opposition from MP3 player makers means 1-3% levy on devices will have to wait
Japan has been forced to drop plans for a so-called iPod tax after massive
opposition from the manufacturers of MP3 players.
Japanese authorities had hoped to impose a 1-3% levy on the price of portable
digital players as a means to compensate music companies and artists for what is
considered duplication of their products when music is transferred onto the
Currently, DVD recorders and minidisk players are subject to a similar tax in
Japan but so far MP3 players have avoided the charge following a failed first
attempt to include them in 2005.
The plan was resurrected in May, but was subject to huge opposition from
manufacturers who claimed they would be forced to absorb the costs rather than
pass them on to customers, according to Tax News.
The Agency for Cultural Affairs has now admitted that there is ‘virtually no
hope’ of getting the legislation passed at this point in time.