European artists calling European Union to cut VAT on CDs

June 5, 2003

katastrofe used our news submit to tell us
that more than 1.200 international music artists have signed a petition being presented to the European Union in Brussels. In the
petition artists are calling on the EU to cut VAT (taxes) on
CDs.

The artists feel that music should be made more
attractive by reducing prices and they argue that music should be
classed in line with other cultural products such as books, newspapers and
theatre tickets:

Callier,
from the band Hooverphonic, said: " When someone buys a biography of
Jacques Brel in Belgium he pays a VAT rate of 6%, but if he buys a CD of
his music he has to pay 21%. "This makes no sense and does not recognise
the cultural role of musical artists."

The European Commission is currently
considering changes to the EU's system of reduced rates as part of a
review of VAT directives.

VAT on CDs is set at between 15% and 25%.
Rates range from Sweden and Denmark (25%) to Luxembourg (15%), with the UK
on 17.5%.

A recent survey for the International
Federation of the Phonographic Industry (IFPI) found that 60% of people
over the age of 16 would buy more CDs if they were made
cheaper.

The IFPI has suggested that increased sales would compensate governments for
any loss of revenue from a VAT cut within one or two
years.

Source: BBC NEWS