EU Finance Ministers urged to reduce VAT on sound recordings

September 16, 2003

The European music
sector urged Member States to seize the opportunity to reduce VAT on sound
recordings, as EU Finance Ministers attended an informal meeting in Stresa,
Italy. VAT on sound recordings is currently set at between 15% and 25%, while
other cultural products such as books, magazines, newspapers, entrance tickets
to cinemas, theatres and concerts benefit from reduced rates upwards of 5%.
Organisations from across the sector have united to call for an end to this
blatant cultural discrimination against music. Entertainment retailers and record companies have given a public
undertaking to maximise the benefits of a VAT reduction for European consumers,
making the incredible diversity of European music more accessible for
everybody.

Richard
Constant, General Counsel of Universal Music International, said: "There
is no logical explanation for the discrimination between the treatment of
sound recordings and other cultural products. It makes absolutely no
sense. A VAT reduction would show that the EU is willing to do something
positive for consumers and particularly for young people who have a very
close affinity with music."

A VAT Coalition
comprising representatives of authors, composers, music publishers,
performing artists, artist managers, independent and major record
companies, entertainment retailers and collective management societies,
was set up to express the consolidated view of the European music sector
during the review of the 6th VAT Directive. Their position has the backing
of over 1,300 European artists and composers who have signed petitions
calling for a VAT reduction on sound recordings. Signatories include:
Roberto Alagna, Cecilia Bartoli, Andrea Bocelli, Pierre Boulez, Patrick
Bruel, Carla Bruni, Chris de Burgh, Johnny Hallyday, Julio Iglesias, Elton
John, Eros Ramazzotti, Axelle Red, Nana Mouskouri and Anne-Sophie Mutter.
The full list of artists and composers supporting this campaign can be
seen at www.givemusicabreak.com

Makes sense to me Dick, except the reasoning about
young people. Don't torque yourself down like that when you are trying to get
governmental support. Maybe everyone could enjoy the savings. For instance,
this study mentioned in the article indicates that it would spur a growth
in music sales. "A five-country survey, carried out by research agency Martin
Hamblin GfK (December 2002), indicated that a VAT reduction on sound recordings
would give a significant boost to the recorded music market in Europe. A number
of EU governments have already expressed the wish to treat sound recordings as
cultural goods from a VAT viewpoint."

This increase in sales could help offset the
reduction in taxes to the government. Lets see if the voices are heard, better
yet, responded to favorably.

Source: mi2n.com