French proposal would impose 1% tax on Internet-connected devices

By on May 13, 2013, 12:30 PM
yahoo, tablet, french, dailymotion, culture tax, smartrphones, internet-connected, french government

A new proposal recently delivered to French President Francois Hollande aims to create new sources of revenue from tech giants like Amazon, Apple and Google. If passed, the legislation would create a one percent tax on the sale of all Internet-connected devices in the country to help fund cultural-based projects.

Tech makers selling smartphones and tablets have been accused of taking advantage of loopholes in the local tax system to avoid paying hefty taxes to the French government. The proposed tax would bring in about $112 million per year in extra revenue – most of which would come from the sale of hardware.

The hardware tax is just the latest tax collection effort from French officials. In 2010 lawmakers proposed a similar one percent tax for all online advertising expenses. Earlier this year another proposal aimed to collect tax from those that collect personal information about users. There’s even talk of a tax that would force big companies to pay for content links.

The proposal could increase tension between the country and tech giants. It comes just weeks after the French government put a stop to a deal that would have seen Yahoo purchase a controlling stake in online video website Dailymotion for $300 million. Officials didn’t like the idea of losing control over one of the biggest Internet successes, according to reports.

The latest proposal still has a long way to go before becoming a law, however. President Hollande reportedly requested legislative review on it by this summer.




User Comments: 11

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JC713 JC713 said:

1% is nothing, but still, this is ridiculous.

1 person liked this | TekGun TekGun said:

Well it's not nothing it's 1%, I spent over 6k online last year, I'm already taxed to the hilt so no it's not nothing to me.

bielius bielius said:

And here it comes... taxing every piece of electronics device connected to the internet. Government will tax us for everything we use and do before we know it.

1 person liked this | Heihachi1337 said:

What to do when your government is floundering and can't control spending? Throw out more BS taxes! Cause why should they have to learn to budget and live within their means? /sarcasm

Seriously, dumbest idea ever. Sadly, I see this idea coming to the US. Hell, I wouldn't put it past them to charge us yearly for every video game we own too because "they are too violent and cause shootings" or some BS.

MilwaukeeMike said:

And here it comes... taxing every piece of electronics device connected to the internet. Government will tax us for everything we use and do before we know it.

As much as I'd like to say that this is France and it doesn't mean other governments will be taxing us in all sorts of new ways... I'll bet the US govt sees this and hopes it goes through so they can try something similar here.

1 person liked this | davislane1 davislane1 said:

Politicians have always had a proclivity for trying to bridge the gap between theory and application. Unfortunately for us non-elites Monopoly isn't as charming when you play it in real life.

Guest said:

It may help the understanding of this "proposal" if it is reminded that the lobby of the music & movie industries is putting the pressure on the French government to obtain compensation for the losses suffered since napster?

Two years ago, a new administrative authority (hadopi) has been created to launch notification, fine and law suit against piracy. While the p2p traffic droped due to this administration activity, the music & movie industries still did not recover their former annual sales revenue & margin.

From the music & movie industries point of view, people are still buying music & movie not the traditional way but through internet. Therefore they want to obtain money from the companies making money with internet trafic: internet service provider, hardware companies (cause your Go capacity would be less attractive without all "free" content) and internet companies (less trafic and less advertising revenue without "free" content) like youtube.

Don't get me wrong, despite this explanation I do think this "proposal" is still a stupid idea but not that surprising as the proposal come from a commission which president is a former VP in TV, music & movie major company.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

I wish they would make it 50%. Maybe then we as a society would grow a pair and put a stop to the BS.

spencer spencer said:

I wish they would make it 50%. Maybe then we as a society would grow a pair and put a stop to the BS.
This is a good point, but with the majority of the world disarmed how would that happen(unless in america) and it will be perceived "cool and"hip to be taxed to the point of poverty and+or death. They won't make it 50% till the one world government takes over or revolution/restoration occurs (millions die in the process). I am glad to see that the majority of you guys appear to have woken up; only through people that have woken up will restoration occur. And to the naysayers look up my words for yourself use your own discretion (don't believe globalist news networks)CNN MSNBC NBC and FOX as they are owned by the very same people (globalists) that cause all of these...problems.

Renrew Renrew said:

There are already quite a few countries with tax rates 50% or above Denmark, Austria, Sweden to name a few.

[link]

cliffordcooley cliffordcooley, TechSpot Paladin, said:

There are already quite a few countries with tax rates 50% or above Denmark, Austria, Sweden to name a few.

[link]

We are talking about a specific tax that is combined with other taxes, not total tax rates. I have no intentions of disputing your comment which I already knew to be true.

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